The 2026 Roth Catch-Up Rule Hits Workers Over $145,000: 4 ETFs to Make the Most of It

Starting January 1, 2026, workers who earned more than $145,000 in FICA wages (Box 3 of Form W-2) in the prior year can no longer make pre-tax catch-up contributions to their 401(k) or similar plan. The rule change removes pre-tax catch-up eligibility for employees above the $145,000 FICA threshold and will affect retirement tax-planning for impacted higher-income workers.

Analysis

Starting January 1, 2026, workers who earned more than $145,000 in FICA wages (Box 3 of Form W-2) in the prior year can no longer make pre-tax catch-up contributions to their 401(k) or similar plan. The rule change removes pre-tax catch-up eligibility for employees above the $145,000 FICA threshold and will affect retirement tax-planning for impacted higher-income workers.