Every year brings changes to retirement accounts, and that's usually a good thing. You're allowed to put more money away in IRAs and 401(k)s in 2026 than you could in years past. So there's plenty of opportunity to make up for lost time if you weren't able to save as much as you wanted to when you were younger.

But this year, there's also a 401(k) change that might be less welcome if you're a high earner. This could raise your tax bill going forward, but it has a silver lining.

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Roth catch-up contributions are now required for the wealthy

In 2026, the standard 401(k) contribution limit rose to $24,500 for adults under 50. Adults aged 50 to 59 and 64 and older may contribute up to $32,500 this year, and those who will be between the ages of 60 and 63 by the end of 2026 can save up to $35,750. These extra contributions beyond the standard limit are known as catch-up contributions.

Catch-up contributions are a great way to improve your retirement readiness if you weren't able to save as much as you wanted in years past. Of course, you have to have a lot of extra cash to take advantage of them.

In past years, you've been able to save up to your annual limit, including catch-up contributions, in either a traditional 401(k) or a Roth 401(k), or using a combination of both. For most savers, that's still true in 2026.

However, if you earn more than $150,000, you now must make catch-up contributions to a Roth 401(k). Failing to do so will result in tax penalties.

The upside to making Roth catch-up contributions

Roth contributions require you to pay taxes on your contributions in the year that you make them. This means you could face a larger tax bill in 2026 than you had in years past if you'd previously been stashing savings in a traditional 401(k), which gives you a tax break upfront.

But once you reach age 59 1/2 and have had a Roth account for at least five years, you can withdraw your contributions and earnings tax- and penalty-free. This can give you greater control over your retirement tax bill.

Keep in mind that, even with a high income, you're not barred from making traditional 401(k) contributions up to the $24,500 standard limit. If you want to keep the tax increase to a minimum, consider stashing some savings in a traditional 401(k) until you hit this cap.