The End of Pretax Catch-Ups? What SECURE 2.0 Means for High Earners in 2026
Let’s start with a reality check about the upcoming SECURE 2.0 pretax catch-up rule in 2026:
If you’re a high earner who loves maxing out your 401(k), your 2026 paycheck may look a little different — and not in a good way.
Here’s why the SECURE 2.0 pretax catch-up rule in 2026 affects your contributions.
🎯 What’s Changing
Beginning January 1, 2026, under SECURE 2.0, anyone earning $145,000 or more (indexed for inflation) can no longer make pretax catch-up contributions to a workplace retirement plan.
Instead, those extra dollars must go into a Roth 401(k) — meaning you’ll pay taxes now, not later.
In other words, your “tax-free growth” future is still there, but your pretax deduction is gone.
Think of it as Uncle Sam saying, “I’ll take my cut now, thank you.” This is all part of the SECURE 2.0 pretax catch-up rule heading into 2026.
⚙️ Who It Impacts Most
This hits:
- High-income professionals in their 50s catching up for retirement
- Executives and partners with large pretax balances
- Retirees still contributing to SEP or solo 401(k)s
If you’ve been relying on pretax catch-ups to reduce taxable income — this rule pulls the rug out from under that strategy.
🧠 Real-Life Example
Meet Dr. Karen, a 55-year-old dentist earning $220,000.
Every year, she contributes the maximum to her 401(k), including a $7,500 catch-up. That $7,500 currently lowers her taxable income — saving her roughly $2,500 in taxes.
In 2026, that same $7,500 will go into a Roth bucket instead. No upfront deduction. More taxes today due to the SECURE 2.0 pretax catch-up rule in 2026.
But here’s the twist — for some, this isn’t all bad news.
Because when Karen retires, those Roth funds will come out tax-free.
If tax rates increase (and with the 2026 Tax Sunset, that’s very possible), she’ll be glad she paid the bill early.
💡 Planning Moves to Consider Before 2026
1️⃣ Run a Roth conversion comparison now.
Don’t wait for the SECURE 2.0 pretax catch-up rule in 2026 to arrive before evaluating your pretax-to-Roth mix.
2️⃣ Review your payroll setup.
Make sure your HR or payroll provider knows your intent for catch-up contributions.
3️⃣ Think strategically about tax diversification.
Don’t just focus on deductions today. Blend pretax, Roth, and taxable accounts for long-term flexibility.
4️⃣ Talk timing.
If you’re retiring in 2026 or 2027, your withdrawal strategy may need to shift earlier to optimize taxes.
🏁 Bottom Line
This is one of those “small paragraph, big impact” law changes.
You don’t want to find out you’re paying more tax at age 55 because you missed the planning window at 53.
📞 Let’s talk strategy before the rules flip.
Schedule your 15-minute Discovery Call with Quraishi Law & Wealth — and make sure your 2026 plan is as tax-efficient as your career has been successful.
