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IRS Finalizes 401(k) Catch-Up Rules for Seniors

9/16/2025

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Summary

Story summary

On Sept. 15, 2025, the IRS finalized regulations for 401(k) catch-up contributions for workers aged 50 and older.
Higher-income participants must now make catch-up contributions as after-tax Roth contributions.
Plans must include Roth accounts if they currently only permit pre-tax contributions.
A $145,000 FICA wage cut-off for post-tax contributions is confirmed.
The new rules take effect after Dec. 31, 2026, with exceptions for governmental plans.

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Story summary

On Sept. 15, 2025, the IRS finalized regulations for 401(k) catch-up contributions for workers aged 50 and older.
Higher-income participants must now make catch-up contributions as after-tax Roth contributions.
Plans must include Roth accounts if they currently only permit pre-tax contributions.
A $145,000 FICA wage cut-off for post-tax contributions is confirmed.
The new rules take effect after Dec. 31, 2026, with exceptions for governmental plans.