New Roth 401(k) Rule Changes: What You Should Know for 2026

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There are significant changes to Roth 401(k) account rules to be aware of this year. These changes, brought about by the SECURE 2.0 Act, are designed to enhance the benefits of Roth 401(k)s and provide more flexibility and tax advantages for retirement planning.

Here’s more of what you need to know.

Elimination of Roth 401(k) RMDs

One change as of last year is the elimination of required minimum distributions (RMDs) for designated Roth 401(k) accounts. (RMDs are the minimum amounts that must come out of given retirement plan accounts each year once the account holder reaches a certain age.)

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Previously, Roth 401(k)s were subject to the same RMD rules as traditional 401(k)s despite their tax-free withdrawals in retirement. This meant that account holders had to start withdrawing a certain amount from their Roth 401(k) annually, starting at age 73. To avoid required minimum distributions, some account holders rolled over their Roth 401(k) to a Roth IRA.

The SECURE 2.0 Act eliminates RMDs for qualified employer Roth plan accounts. So, owners of these Roth 401(k) accounts no longer have to take RMDs.

This change aligns Roth 401(k)s more closely with Roth IRAs. Previously, the rules that applied to Roth 401(k) accounts in employer plans differed from those for Roth IRAs (i.e., the latter were not subject to required minimum distributions).
Investors can now leave their funds in the Roth 401(k) to continue growing tax-free.
The elimination of RMDs can help reduce your taxable income in retirement.

Employer match for a Roth 401(k)

A second change is related to employer-matching contributions. In the past, when employees contributed to a Roth 401(k), any employer-matching contributions were placed into a traditional 401(k) account.

Now, employers can generally deposit matching contributions directly into employees' Roth 401(k) accounts. The contributions grow tax-free and can be withdrawn tax-free. (This match option also applies to Roth contributions to a 403(b) or 457(b) plan account.)

However, there's a catch: These employer Roth 401(k) matching contributions will be taxed as income in the year they are made. If you chose this option for 2025, you should expect to see these matched amounts included in your taxable wages on the W-2 you receive in early 2026.

Some see this as a trade-off for future tax benefits during retirement, but if your employer matches Roth 401(k) contributions, you should plan for potential tax implications.

Note: Roth matching contributions are optional. Not all employers will adopt this.

Roth catch-up contributions

It’s also important to remember that another rule from SECURE 2.0 will eventually require high earners to make catch-up contributions on a Roth basis.

For the 2025 tax year (returns you'll file soon), you can still make catch-up contributions on a pre-tax basis regardless of your income. However, starting in 2026, if your wages from the previous year exceeded $150,000, the law requires your catch-up contributions to be made on an after-tax Roth basis.

As Kiplinger has reported, while originally slated for earlier (2024), the IRS delayed implementation of the mandatory Roth catch-up requirement for high earners until January 1, 2026. (Though the tax agency has said that 2026 is a good-faith implementation year and that the new rule will be fully implemented after December 31, 2026.)

Making catch-up contributions on an after-tax Roth basis means paying taxes on your retirement savings during the years you usually earn more.
As of 2026, the SECURE 2.0 Roth catch-up contribution rule won’t apply to taxpayers making less than $150,000 in a tax year.
If you are 50-59 and 64 or older, the catch-up contribution limit for 2025 is an additional $7,500 per year. For those 60-63, it's $11,250, due to new super catch-up contribution provisions.

For more information, see New SECURE 2.0 Super 401(k) Catch-Up Contribution for Ages 60-63.

Roth contribution limits 2025

Contributions to your 401(k) generally need to be made by Dec. 31 of each year.

As Kiplinger has reported, if you are younger than 50, the maximum amount you could contribute to a Roth 401(k) for the 2025 tax year is $23,500. For 2025 catch-up contributions, the maximum total contribution was $31,000 for those ages 50–59 and 64+. If you’re 60–63 in 2025, that total was $34,750 (the $23,500 base limit plus the new $11,250 super catch-up).

For the 2026 tax year (returns you'll file in 2027), the maximum Roth 401(k) contribution if you are under 50 rises to $24,500. With the standard age‑50+ catch-up, those 50–59 and 64+ can contribute up to $32,500 in 2026. If you’re 60–63 in 2026 and your plan offers the SECURE 2.0 “super catch-up,” your total limit is $35,750 (the $24,500 base limit plus an $11,250 super catch-up).

For more information, see Roth 401(k) Contribution Limits.

New Roth 401(k) rules: Bottom line

These Roth 401(k) changes and other retirement plan rule changes in the SECURE 2.0 Act are partly to encourage people to save for retirement.

Eliminating Roth 401(k) RMDs can provide greater flexibility and extended tax-free growth and lower your taxable income in retirement. Meanwhile, the option for employer matching contributions directly to Roth 401(k)s aligns treatment of contributions. That can help support a tax-free withdrawal strategy in retirement.

Review your retirement plans and discuss these and other options with a financial advisor or tax planner to maximize your benefits.

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has helped taxpayers make sense of shifting U.S. tax law and policy from the Affordable Care Act (ACA) and the Tax Cuts and Jobs Act (TCJA), to SECURE 2.0, the Inflation Reduction Act, and most recently, the 2025 “Big, Beautiful Bill.” She has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and energy tax credits. Her award‑winning work has been featured in numerous national and specialty publications.