The Internal Revenue Service announced the cost of living adjustments (COLA) for tax year 2026, including an unexpected increase to the Roth catch-up wage threshold for 2025 from $145,000 to $150,000.
Use the $150,000 threshold to review 2025 FICA wages to determine which employees will be required to contribute catch-up contributions as Roth in 2026.
Defined contribution plan highlights include the following:
Click here to view the full listing of COLA updates.
Participant Notices and catch-up contributions for participants ages 60 to 63
We are providing two versions of the Participant Notice. One notice includes the higher catch-up contribution limits for participants ages 60 to 63 for plans that are allowing the special limit and the second notice omits the special catch-up contribution limits for plans that have not adopted the higher limits.
Click here for a sample Participant Notice which includes the higher catch-up contribution limits for participants ages 60 to 63.
Click here for a sample Participant Notice which omits the higher catch-up contribution limits for participants ages 60 to 63.
