Core Insights - The SECURE 2.0 Act introduces significant changes to catch-up retirement contributions for higher earners, particularly affecting tax benefits associated with these contributions [1][2]. Group 1: Changes in Catch-Up Contributions - Starting January 1, 2026, workers with FICA wages exceeding $150,000 must make catch-up contributions as after-tax (Roth) contributions instead of pre-tax contributions [2][3]. - The income threshold of $150,000 is indexed for inflation and is based solely on W-2 Social Security wages from the employer, not adjusted gross income or household earnings [3]. Group 2: Implications for Higher Earners - Higher earners will not receive tax deductions for their catch-up contributions, as Roth contributions are made with after-tax dollars, thus counting as taxable income in the year they are made [4]. - If an employer-sponsored plan does not offer Roth contributions, higher earners may be unable to make catch-up contributions at all [4]. Group 3: Alternative Retirement Savings Options - Individuals unable to make catch-up contributions in employer-sponsored plans can consider opening an IRA for additional retirement savings, though limits may apply based on income [5]. - For those with qualifying high deductible health plans, Health Savings Accounts (HSAs) are an option, allowing contributions with pre-tax dollars and tax-free growth for qualified medical expenses [6].