SECURE 2.0 Mandatory Roth Catch-Up: Are You Affected in 2026?
Starting 2026, federal employees 50+ earning over $150K must make TSP catch-up contributions to Roth. Learn who's affected and what it means for your taxes.
Starting January 1, 2026, some federal employees no longer have a choice about where their catch-up contributions go. If you're 50 or older and earned more than $150,000 last year, your catch-up contributions must go to Roth TSP.
This isn't optional. It's the law under SECURE 2.0.
Here's what you need to know.
Key Takeaways
- Federal employees 50+ with 2025 wages over $150,000 must make catch-up contributions to Roth TSP starting January 2026
- Only catch-up is affected, your regular contributions up to $24,500 can still be traditional or Roth
- The switch happens automatically, no action required from you
- You'll have smaller paychecks now, but tax-free withdrawals in retirement
Are You Affected?
You must make Roth catch-up contributions in 2026 if you meet both criteria:
| Requirement | Details |
|---|---|
| Age | 50 or older as of December 31, 2026 |
| 2025 Income | Over $150,000 in Social Security wages (W-2 Box 3) |
Who Typically Exceeds $150,000?
- GS-13 Step 10+ in high-cost localities (DC, NYC, SF, LA)
- GS-14, GS-15, SES employees
- Law enforcement with LEAP overtime
- Medical officers, attorneys, and other special pay scales
Who Is NOT Affected
- Under age 50: Not eligible for catch-up contributions at all
- Earned $150,000 or less in 2025: Can choose traditional or Roth for catch-up
- New federal hires in 2026: No prior federal wages to measure
- CSRS with $0 Social Security wages: Check Medicare wages in Box 5 instead
2026 TSP Contribution Limits
| Category | Annual Limit | Per Pay Period (26) |
|---|---|---|
| Regular contributions | $24,500 | $942 |
| Catch-up (ages 50-59, 64+) | $8,000 | $308 |
| Super catch-up (ages 60-63) | $11,250 | $433 |
| Max total (50-59, 64+) | $32,500 | $1,250 |
| Max total (60-63) | $35,750 | $1,375 |
Important: Only the catch-up portion must be Roth for high earners. Your regular $24,500 can still go to traditional TSP if you prefer.
The Income Threshold: Which Wages Count?
The $150,000 threshold is based on your 2025 FICA wages, not your total income.
Look at your W-2:
- Box 3: Social Security wages (most employees)
- Box 5: Medicare wages (for CSRS employees with $0 in Box 3)
This is your prior year's wages, not current year. If you had high overtime in 2025 but expect less in 2026, you're still subject to the rule.
How the Automatic Switch Works
You don't need to do anything. Here's what happens:
- Your payroll office checks your 2025 wages against the $150,000 threshold
- First $24,500 is your choice: Traditional, Roth, or a mix
- After $24,500, catch-up kicks in: Automatically goes to Roth if you're subject to the rule
- Roth balance created if needed: If you've never contributed to Roth TSP, your first mandatory Roth catch-up creates one
No election changes required. The system handles it.
Tax Impact: The Paycheck Hit
Roth contributions are after-tax. Your paycheck will be smaller compared to traditional catch-up.
Example: You make the maximum $8,000 catch-up contribution.
| Your Tax Bracket | Additional Federal Tax |
|---|---|
| 22% | $1,760 |
| 24% | $1,920 |
| 32% | $2,560 |
Add state income tax where applicable.
The Long-Term Tradeoff
Yes, you pay more tax now. But:
- Tax-free growth: Roth earnings are never taxed
- Tax-free withdrawals: Qualified withdrawals in retirement are 100% tax-free
- No RMDs: As of SECURE 2.0, Roth TSP is no longer subject to required minimum distributions during your lifetime
For high earners who expect similar tax rates in retirement, forced Roth isn't necessarily bad. It's tax diversification you might not have done voluntarily.
The Super Catch-Up for Ages 60-63
SECURE 2.0 added a bonus for employees in their early 60s. If you turn 60, 61, 62, or 63 during 2026, your catch-up limit is $11,250 instead of $8,000.
This "super catch-up" also must be Roth if you exceed the $150,000 threshold.
Combined with the $24,500 regular limit:
- Ages 50-59, 64+: Up to $32,500 total
- Ages 60-63: Up to $35,750 total
Take advantage of this if you're in the sweet spot. It's $3,250 extra tax-advantaged savings.
What About Regular Contributions?
Let's be clear: the mandatory Roth rule only affects catch-up contributions.
Your first $24,500 in 2026 can still be:
- 100% Traditional
- 100% Roth
- Any mix you choose
The rule kicks in only after you exceed the regular limit. If you prefer to stop at $24,500 and skip catch-up entirely, you can. You'd just miss out on $8,000-$11,250 in additional tax-advantaged savings.
Related: TSP In-Plan Roth Conversions
Starting January 28, 2026, there's another new TSP feature: in-plan Roth conversions.
This lets you convert existing traditional TSP balances to Roth directly within the plan. No more rolling out to an IRA first.
This is separate from the mandatory catch-up rule. Any TSP participant can use conversions, regardless of income. But they pair well for tax planning.
Read our full guide: TSP Roth In-Plan Conversion Guide 2026
Model Your TSP Growth
Use our free TSP Calculator to see how Roth vs. Traditional contributions affect your long-term retirement balance.
Model different scenarios: all traditional, all Roth, or the mandatory split you're now required to use.
Frequently Asked Questions
What is the mandatory Roth catch-up rule under SECURE 2.0?
Section 603 of SECURE 2.0 requires federal employees age 50+ who earned more than $150,000 in the prior year to make catch-up contributions to Roth TSP only. They can no longer direct catch-up to traditional TSP. This took effect January 1, 2026.
Who is affected by the mandatory Roth catch-up rule in 2026?
Federal employees who are 50 or older by December 31, 2026, AND earned over $150,000 in 2025 Social Security wages (W-2 Box 3). This typically includes GS-13 Step 10+ in high localities, GS-14, GS-15, SES, and law enforcement with overtime.
Does the mandatory Roth rule apply to my regular TSP contributions?
No. Only catch-up contributions are affected. Your regular contributions up to $24,500 can still be traditional, Roth, or a mix, regardless of income.
Do I need to change my TSP contribution election?
No action required. Your payroll office handles the switch automatically once you exceed the $24,500 regular contribution limit.
What is the super catch-up for ages 60-63?
SECURE 2.0 created a higher catch-up limit for employees turning 60-63 during the year. For 2026, this is $11,250 instead of the standard $8,000. Combined with the $24,500 regular limit, you can contribute up to $35,750 total.
What income determines if I am subject to the rule?
Your 2025 FICA wages, specifically Social Security wages in W-2 Box 3. For CSRS employees with $0 Social Security wages, Medicare wages in Box 5 are used. If these exceed $150,000, the mandatory Roth rule applies.
Are new federal employees hired in 2026 subject to the rule?
No. New hires in 2026 have no prior-year federal wages to measure against the threshold. They're exempt for 2026, but the rule could apply to them in 2027 based on 2026 wages.
Related Resources
- TSP Guide 2026: Complete guide to the Thrift Savings Plan
- TSP Calculator: Model your TSP growth and withdrawals
- TSP Roth In-Plan Conversion Guide 2026: How to convert traditional TSP to Roth
- FERS Retirement Calculator: Estimate your federal pension
Sources
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