As we reach the midpoint of Q3 2026, many taxpayers are reviewing their withholding and estimated payments for the year and making fresh adjustments and projections to better prepare for the 2026 tax filing season. For high earners contributing to 401(k)s, SECURE 2.0 has generated some new requirements and opportunities that need to be considered as part of those adjustments and projections.
401(k) Contributions in 2026 and the Retirement “Glide Path”
The new 401(k) rules originate from recent shifts emphasizing contributions to Roth accounts and also incentivizing larger 401(k) catch-up contributions for those in the final years before reaching full retirement age. Briefly, in addition to the standard $24,500 contribution for 2026, persons age 50 and above can make an $8,000 catch-up contribution to boost retirement savings. Additionally, those 60–63 can make a “super catch-up” contribution of $11,250, if the provisions of their plan allow it.
However, those with $150,000 or more in FICA earnings (wages, salaries, tips, or bonuses paid by an employer that are subject to FICA withholding) must make those catch-up contributions to a Roth, rather than a traditional account. Because Roth contributions are after-tax, these catch-up contributions will not provide a reduction in taxable income in the year they are made. On the other hand, as long as the Roth account meets the five-year account aging requirement, qualified withdrawals from the account will not be counted as taxable income (such withdrawals from traditional accounts are taxed as ordinary income).
It’s important to understand that if your earned income is above the $150,000 limit and your 401(k) does not offer a Roth option, you may not be able to make a 401(k) catch-up contribution.
How can I make up for lost deductions and catch-up opportunities?
On the other hand, there are some other ways to continue boosting funds available for retirement expenses.
- HSA accounts. High earners may wish to consider opening a health savings account (HSA). Contributions to an HSA are pre-tax, which means they are deductible from current income. Persons with family coverage may contribute up to $8,750 to an HSA in 2026, and those 55 and older can contribute an additional $1,000. Funds in the account grow tax-free, and distributions for qualified healthcare expenses are not counted as taxable income. Note, however, that at age 65 or older, you can take withdrawals for purposes other than healthcare, but those withdrawals will be taxed as ordinary income (similar to qualified withdrawals from a traditional retirement plan). Note that once you apply for Medicare Part A and/or B, you may no longer contribute to an HSA.
- Maximize available contributions to your existing plan. Regardless of your income, you can still contribute up to $24,500 to your Roth or traditional 401(k) in 2026 (up from $23,500 in 2025). Even without additional catch-up contributions, maximizing the savings in your tax-advantaged retirement plan is still the number-one tool for building a more financially secure retirement.
- Partial Roth IRA contribution. In 2026, married couples filing jointly with modified adjusted gross income (MAGI) of $242,000–252,000 can make partial contributions to a Roth IRA. Like a Roth 401(k), a Roth IRA is subject to the five-year aging rule, but even partial contributions can help you build a source of tax-free income in retirement.
- Backdoor Roth IRA conversion. Though backdoor Roth conversions require complex tax considerations, under the right circumstances they can allow taxpayers to move money into a Roth environment, qualifying for tax-free income in retirement as long as 5-year aging and other requirements are met. With a standard Roth conversion, where funds are moved from a traditional IRA to a Roth IRA, the conversion amount is fully taxable in the year of the conversion. By contrast, a backdoor Roth conversion involves making nondeductible contributions to a traditional account (i.e., post-tax funds) and then converting the account to Roth status. Note that any IRAs you own which contain tax-deferred funds are considered in aggregate for tax purposes with a Roth conversion.
Your Rothschild advisor can help you maximize opportunities for contributions to qualified retirement accounts. If you would like guidance for making your income and investments more tax-efficient, please let us help.
