Patrick Anderson – President of UniFirst Financial and Tax Consultants

The retirement rules for high-income professionals change again in 2026. And this one hits fast.

If you earn around $150,000+ and you’re age 50 or older, your catch-up contributions no longer go in pre-tax by default. They go Roth. After-tax. On purpose.

At UniFirst Financial and Tax Consultants, we treat rule changes like this as leverage. "We significantly reduce taxes by around 50% almost 100% of the time using proven strategies unlike those offered anywhere else in the financial industry." The 2026 Roth mandate becomes one more tool in the plan—when it’s coordinated correctly.

The $150,000-ish Line That Triggers the Rule

Secure 2.0 sets the test based on your prior-year wages with the same employer.

If you earned more than $145,000 (indexed; widely expected to be about $150,000 for 2026) in FICA wages, then your catch-up contributions must be Roth.

No workaround inside the plan. No election to keep catch-up pre-tax.

Translation: you pay the tax now, so the growth and qualified withdrawals can be tax-free later.

What Changes in Your 401(k) (or 403(b))

If you’re 50+, you typically have two layers of savings:

• Standard deferral (everyone): the normal employee contribution limit
• Catch-up (50+): the extra amount you can add

In 2026, if you’re above the income threshold, the catch-up portion must be Roth. Your standard deferral can still be pre-tax or Roth, depending on what your plan allows and what fits your tax strategy.

Why that matters

Most high earners have built big pre-tax balances. That creates a future tax problem. Required distributions. Higher Medicare premiums. Taxation on Social Security. Bigger tax brackets in retirement.

Roth catch-up helps diversify your “tax buckets.”

"Pay tax on the seed, not the harvest."

The Biggest Trap: If Your Plan Has No Roth Option

This is where people get blindsided.

If your employer plan does not offer a Roth feature, and the plan allows catch-up contributions, the plan can run into compliance issues under the new rule. That can mean catch-up contributions get blocked or mishandled.

You don’t want to discover this in late 2026 after payroll errors and missed opportunities.

Action: ask your HR/plan provider now:
“Is Roth enabled for catch-up contributions for 2026?”

How We Use the Rule (Instead of Fighting It)

Most advisors stop at, “Well, you’ll pay more tax this year.”

We don’t.

We coordinate the forced Roth catch-up with the rest of your tax picture—so you keep control of your lifetime tax bill.

Our process focuses on:

• Personalized tax planning that looks forward, not backward
• Retirement planning using our Safety First Strategy to build retirement income for life
• Wealth management that supports long-term outcomes, not short-term noise

And for business owners, we can also review advanced strategies (when appropriate) to reduce taxes and smooth wealth transfer.

"We don’t do cookie-cutter. We build a customized tax plan around your entire financial life."

A Practical 2026 Checklist (Keep This Simple)

1. Check your prior-year wages (FICA). Over the threshold? You’re in mandatory Roth catch-up territory.
2. Confirm your plan has Roth. If it’s not active, push for clarity now—before payroll locks in.
3. Re-balance your strategy. If catch-up must be Roth, we often adjust other parts of the plan to manage today’s tax bite while improving long-term tax flexibility.

Wisdom in Stewardship

Taxes are real. Planning matters.

Proverbs 21:20 says: "In the house of the wise are stores of choice food and olive oil, but a foolish man devours all he has."

High income is an opportunity. It’s also a responsibility. The goal is simple: keep more. Protect more. Pass on more.

Your No-Obligation 2026 Tax Strategy Assessment

If you’re earning around $150,000+ and want to know exactly how the Roth catch-up rule affects your situation, we’ll run the numbers and map the options.

This is a Risk-Free 2026 Tax Strategy Assessment. No obligation. Clear next steps.

UniFirst Financial and Tax Consultants
205 Van Buren St., Suite 120, Herndon VA 20170
(888) 581-3320 | patrick@unifirstfinancial.com
https://unifirstfinancial.com/contact