The New Roth Catch-Up Rule: Earning $150K+? Your 401(k) Just Changed

Align Your Retirement · Aug 12, 2026 · 11m · transcript

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If you're over 50 and earned more than $150,000 last year, a SECURE 2.0 rule that took effect this January changed your 401(k): your catch-up contributions must now go into the Roth side, after tax and with no deduction. Most high earners are discovering this through a slightly lighter paycheck and assuming it's a payroll error. It isn't.

In this episode, Hazel Secco, CFP®, CDFA® breaks down exactly who the rule catches (it's your wages from one employer, not household income), what it really costs (~$2,800/year at a 35% marginal rate), and why, for women with large pre-tax…