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Ask the Experts October 14, 2025
When Will Plan Sponsors Know the Wage Threshold for 2026 Roth Catch-Ups?
Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations.
Reported by PLANSPONSOR Staff
Q: I just heard from my recordkeeper that the $145,000 threshold of 2025 FICA wages for determining whether catch-up contributions must be made as Roth in 2026 may not actually be $145,000. Can the Experts explain?
Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:
A: Absolutely! The Experts actually published a column on this issue in April, but it is worth revisiting due to the upcoming January 1, 2026 deadline to implement the mandatory Roth catch-up contribution provision of SECURE 2.0 Act of 2022.
The $145,000 threshold is indexed each year, and the amount of 2025 FICA wages that will be used to determine whether an individual can only make Roth catch-up contributions in 2026 will not be known until the IRS announces the new indexed limits for 2026. This announcement typically takes place at the beginning of November. Some media outlets have reported that the new limit will be $150,000, but we will not know for certain until the IRS announcement
NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.
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