If you’re looking ahead to retirement planning in 2026, there are important updates you’ll want to know about. The SECURE Act 2.0, a follow-up to the original SECURE Act, introduces significant new rules that took effect January 1, 2026. These changes impact how individuals can contribute to their retirement plans, with new requirements for catch-up contributions and more flexibility around Roth accounts and emergency withdrawals.
The SECURE Act 2.0: A Refresher and Why It Matters
The SECURE Act 2.0 was designed to help Americans save more for retirement, increase access to workplace plans, and improve overall retirement security. Its core aim is to promote financial wellness for all employees and strengthen the long-term viability of retirement accounts.
Remaining current with these regulatory changes is key for several reasons:
- Compliance: Avoid costly penalties or operational issues by meeting federal requirements.
- Employee Retention: Providing modern, flexible retirement benefits can help keep valued employees on board.
- Financial Wellness: The changes support broader saving opportunities, helping everyone build a stronger financial future.
The impact touches not just plan administrators, but all plan participants, from new hires to those nearing retirement.
Key SECURE Act 2.0 Changes Effective January 1, 2026
Several significant updates to plans such as 401(k)s, 403(b)s, and 457s, and IRAs are set to take effect in 2026. Understanding these changes will help you make the most of new opportunities and support plan compliance.
Increased Contribution and Catch-Up Limits
These updates increase both annual contribution limits and catch-up opportunities for eligible participants in 2026. The tables below break down the new contribution and catch-up limits by plan type and age group.
Roth Catch-Up Contributions for High Earners
A major change affects higher earning employees. Starting in 2026, anyone earning more than $150,000 in FICA wages in the previous year will only be allowed to make catch-up contributions as Roth (after-tax) dollars. Pre-tax catch-up contributions will no longer be available to this group.
New Roth Employer Contribution Option
Employers can now allow matching or nonelective contributions to be made as Roth (after-tax) rather than traditional pre-tax contributions. These Roth employer contributions are taxable to the employee in the year they are made.
Expanded Income Ranges for IRA Deduction and Roth IRA Eligibility
Income limits for IRA and Roth IRA deductibility, as well as for the Saver’s Credit, are all increasing for 2026.
With these sweeping changes, now is the time to review your plan documents, update administrative systems, and provide employees with up-to-date information. Staying prepared will help your team take full advantage of new retirement savings opportunities in 2026.
Administrative and Compliance Actions for 2026
To avoid costly errors and provide a smooth retirement planning experience, plan sponsors and administrators need to:
Update Plan Documents
Ensure relevant changes are reflected in formal plan documents.
Payroll & Recordkeeping
Modify payroll systems to track eligibility, Roth elections, and the increased catch-up contribution limits if necessary.
Employee Communication
Clearly communicate the new rules to all employees in easy-to-understand terms.
Ongoing Education
Host information sessions or provide written materials, so participants understand their options.
Use IRS/DOL Guidance
Stay current with guidance from the IRS and Department of Labor for best practices and FAQs.
Strategic Opportunities: How These Changes Support Your Goals
The SECURE Act 2.0 brings more than compliance; it gives you powerful tools to strengthen your retirement plan and benefit your employees. Higher contribution limits, increased flexibility, and expanded eligibility mean more team members, including part-timers and late-career savers, can participate and save more for their future.
By enhancing your benefits package and supporting employees’ financial wellness, these changes help boost retention, attract new talent, and build long-term stability for your organization.
Let’s Work Together
If you haven’t yet reviewed your retirement plan for 2026 changes, now is the perfect time to get started. Our team is ready to schedule a personalized plan review to make sure your plan is compliant, competitive, and ready to help you and your team achieve your retirement goals.
