New Retirement Catch-Up Rules Are Live — and ABLE Accounts Just Opened to Millions More

Two of the biggest planning changes of 2026 are now fully in effect: mandatory Roth catch-up contributions for higher earners, and a major expansion of who can open an ABLE account for disability-related savings. Here is what business owners and families should know this week.

1. High earners: your 401(k) catch-up contributions are now Roth-only

Since January 1, 2026, anyone age 50 or older who earned more than $150,000 in FICA wages from a single employer in the prior year must make 401(k) catch-up contributions as Roth (after-tax) contributions at that employer. The traditional pre-tax catch-up is no longer available above that wage threshold.

What that means in practice: the catch-up no longer reduces this year's taxable income — but it grows tax-free and comes out tax-free in retirement. For owners and executives who have relied on the catch-up as a year-end tax lever, the math of when to take the tax hit has changed, and 2026 planning conversations should reflect it.

2. The numbers: 2026 catch-up limits, including the "super catch-up"

• Ages 50–59 and 64+: catch-up limit of $8,000 on top of the standard employee deferral limit.
• Ages 60–63: a special "super catch-up" of up to $11,250 — a SECURE 2.0 provision designed for the peak savings window just before retirement.

Those four years between 60 and 63 are now the most contribution-friendly of a working life. If a business owner's exit timeline lands in that window, retirement plan funding and business succession planning can be sequenced to take advantage of it.

3. Special needs families: ABLE accounts now open to millions more

The change many families have waited a decade for is finally here. As of January 1, 2026, the ABLE Age Adjustment Act (part of SECURE 2.0) raised the eligibility threshold for ABLE accounts: an individual now qualifies if their disability began before age 46 — up from the previous cutoff of age 26. An estimated six million additional Americans became eligible, including many veterans and adults whose disabilities developed later in life.

Why ABLE accounts matter so much in special needs planning:

• Savings in an ABLE account generally do not count against the $2,000 asset limit for SSI, and the first $100,000 is excluded from SSI resource calculations.
• Contributions of up to $20,000 are permitted in 2026, with additional contributions possible for beneficiaries who work.
• Growth is tax-free when spent on qualified disability expenses — housing, transportation, education, assistive technology, and more.

The bottom line

2026 is a year where the rules moved in savers' favor — but only for those who act on them. Business owners should confirm their plans support Roth catch-ups before employees hit the wall; families with a loved one whose disability began before 46 now have a powerful savings tool that didn't exist for them eight months ago.