--- title: "Busey Bank | 2026 Catch-Up Contributions: What Changed, Who’s Affected and How to Plan" description: With recent changes to retirement plan catch-up contributions, you may be affected. 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Customer Care - [Contact Us](https://www.busey.com/busey/customer-care/contact-us) - Locations - [Locations & Hours](https://www.busey.com/busey/customer-care/locations-and-hours) ![](https://moneymatters.busey.com/hubfs/Busey_October2019/MoneyMattersBlogHeader_December2023.jpg) # 2026 Catch-Up Contributions: What Changed, Who’s Affected and How to Plan Posted by [Busey Bank](https://moneymatters.busey.com/author/busey-bank) on Apr 21, 2026 10:15:00 AM ![Busey Bank](https://moneymatters.busey.com/hubfs/Logos/BuseyCircleBlue.png) Find Busey on: [Facebook](https://www.facebook.com/BuseyBank/) [LinkedIn](https://www.linkedin.com/company/busey/mycompany/) [Twitter](https://twitter.com/busey) Share on: [![Share on facebook](https://f.hubspotusercontent00.net/hub/7528304/hubfs/raw_assets/public/mV0_hubspot/img/facebook-color.png?width=24&name=facebook-color.png)](http://www.facebook.com/share.php?u=https://moneymatters.busey.com/busey-bank-2026-catch-up-contributions-what-changed-whos-affected-and-how-to-plan&utm_medium=social&utm_source=facebook) [![Share on linkedin](https://f.hubspotusercontent00.net/hub/7528304/hubfs/raw_assets/public/mV0_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](http://www.linkedin.com/shareArticle?mini=true&url=https://moneymatters.busey.com/busey-bank-2026-catch-up-contributions-what-changed-whos-affected-and-how-to-plan&utm_medium=social&utm_source=linkedin) [![Share on twitter](https://f.hubspotusercontent00.net/hub/7528302/hubfs/raw_assets/public/mV0_hubspot/img/twitter-color.png?width=24&name=twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https://moneymatters.busey.com/busey-bank-2026-catch-up-contributions-what-changed-whos-affected-and-how-to-plan&utm_medium=social&utm_source=twitter&url=https://moneymatters.busey.com/busey-bank-2026-catch-up-contributions-what-changed-whos-affected-and-how-to-plan&utm_medium=social&utm_source=twitter&source=tweetbutton&text=) [![Share on pinterest](https://f.hubspotusercontent00.net/hub/7528304/hubfs/raw_assets/public/mV0_hubspot/img/pinterest-color.png?width=24&name=pinterest-color.png)](http://pinterest.com/pin/create/button/?url=https://moneymatters.busey.com/busey-bank-2026-catch-up-contributions-what-changed-whos-affected-and-how-to-plan&utm_medium=social&utm_source=pinterest&media=) In 2026, retirement plan limits set by the IRS include meaningful updates for individuals age 50 and up. These changes include the enhanced “super” catch-up window at ages 60–63 and the start of the **Roth‑only** rule for higher earners’ catch‑up contributions. ![A man and woman are sitting at a table, talking to another woman who has a laptop.](https://moneymatters.busey.com/hs-fs/hubfs/MoneyMatters/2603_BAN_MM_April_Q2W32.jpg?width=1250&height=417&name=2603_BAN_MM_April_Q2W32.jpg) **What Is the Roth Catch‑Up Rule?** Beginning this year, employees age 50 and above whose prior year wages from their current employer exceed the indexed threshold ($150,000 for 2026) must make all catch‑up contributions on a Roth—or after‑tax—basis. In practice, many higher‑earning employees should expect their 2026 catch‑up contributions to be Roth. **Why This Matters** With this change, considerations to take into account include: **How Does This Affect You?** It’s important that you understand how this change may affect you, including: Because this change may influence your tax bracket, retirement savings strategy and the mix of pre‑tax vs. Roth contributions, it may be worth reassessing your 2026 planning approach. ![Contribution Limits 3-2](https://moneymatters.busey.com/hs-fs/hubfs/MoneyMatters/Contribution%20Limits%203-2.png?width=659&height=643&name=Contribution%20Limits%203-2.png) **Frequently Asked Questions** To help answer some of the more common questions, below is a short list of FAQs. *What if I changed jobs and had multiple W‑2s in the previous year?* Only wages from your current plan sponsor count toward the income threshold. For example, if in 2025, you worked for both ABC Corp and XYZ Corp. Your combined W‑2 income was above the threshold but your wages from XYZ Corp alone were below it—and that is your current employer—you would not be required to make Roth catch‑up contributions. The rule applies only to prior‑year wages from your current employer. *Do employer matches have to be Roth too?* No. Employer contributions generally remain pre‑tax, unless your plan specifically allows otherwise. The Roth‑only requirement applies only to employee catch‑up contributions. *Could this affect my ability to contribute directly to a Roth IRA?* Possibly. Pre‑tax contributions, including pre‑tax catch‑ups, reduce your adjusted gross income (AGI). This can bring your modified AGI (MAGI) below the Roth IRA phase‑out range. If catch‑up contributions must now be Roth, those dollars no longer reduce AGI—and that could push your MAGI into or out of Roth individual retirement account (IRA) eligibility. However, you can still contribute to a Roth IRA using a backdoor Roth strategy. From a tax standpoint, it functions the same as a direct contribution, and the taxation is unchanged. *Are Roth 401(k) and Roth IRA contributions different?* Yes. Roth contributions you make to an employer‑sponsored plan are completely separate from contributions to your Roth IRA. Employer plans—such as 401(k)s or 403(b)s—have significantly higher annual contribution limits than IRAs, which allows you to put more money toward Roth savings each year. You’re also allowed to contribute to both a Roth IRA and a Roth 401(k)/403(b) at the same time. It’s important to note that each type of account has its own set of rules for withdrawals, including different requirements for qualified distributions and penalties. As always, Busey Wealth Management’s team of advisors is here to help you navigate changes and ensure you’re on the right track. To find an advisor near you, visit [busey.com/wealth-management](https://www.busey.com/wealth-management).   *This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.* *This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.* *This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.* *![2406_LOGO_NoNotMay_WM_Disclosure_K](https://moneymatters.busey.com/hs-fs/hubfs/Logos/Wealth%20Management%20Not%20May%20No%20Logos/2406_LOGO_NoNotMay_WM_Disclosure_K.png?width=511&height=59&name=2406_LOGO_NoNotMay_WM_Disclosure_K.png)*   Topics: [Wealth](https://moneymatters.busey.com/tag/wealth) # Join the online Busey community and leave a comment below! ### Busey Bank knows Your Money Matters Money Matters, a financial blog designed to provide insights, resources and tips from the financial experts at Busey, covers a variety of topics to help you realize your financial goals. Topics are focused on Busey's five lines of business—personal, mortgage, commercial, cash management and wealth management.  New content is added regularly to deliver up-to-date information in today's evolving financial landscape. 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