John E. Chapman Chief Executive OfficerRoth Catch-up Rule
Under the SECURE Act 2.0, effective January 1, 2026, participants age 50 or older who earned more than $150,000 in FICA wages in 2025 will be required to make catch-up contributions on a Roth basis.
For 2026, the contribution limits are increasing to:
- $24,500 for standard elective deferrals, and
- $8,000 for the base catch-up contribution.
Please ensure that the company’s payroll and recordkeeping vendors are prepared to support this change, including the transition of applicable catch-up contributions from pre-tax to Roth as required by the rule change.
January Retirement Plan Reminders
As we begin the new year, please take note of the important deadlines and action items below:
Key January Deadlines
- January 31 – 1099-R Deadline: Forms must be sent to participants who received distributions or completed rollovers in the prior year.
- January 31 – W-2/1099 Issuance: Ensure all required forms (W-2, 1099-R, 1099-MISC) are issued to participants.
Plan Administration Tasks
- Review Census Data: Review prior-year census data for accuracy and compliance testing.
- Finalize 2025 Employer Contributions: Calculate and finalize 2025 employer contributions, if not already completed.
- Participant Action – Contribution Review: Participants should review their 2025 contribution summary and consider increasing their deferral rate if they received a raise.
- Update Beneficiary Information: Participants should review and update beneficiary designations as needed.
