As retirement gets closer, you may be able to save more—but some of those extra dollars may have to go into Roth.

Retirement is starting to feel less like “someday” and more like an actual date on the calendar. Before you confirm your workplace benefits choices, give your retirement contributions another look.

In our first two blogs, we explored where to save and why taxes matter. Now comes another question:

Can I use catch-up contributions—and do the rules change how I make them?

Turning 50 opens another savings door

If you are age 50 or older by the end of the calendar year, your workplace 401(k) may allow you to contribute more than the regular employee limit. These extra dollars are called catch-up contributions. You don’t have to be behind on retirement saving to use them.

Think of catch-ups as an opportunity, not an obligation. Start with your household budget: How much more could you comfortably save without stretching yourself too thin?

There is also a higher catch-up allowance for people who turn 60, 61, 62, or 63 during the calendar year, if their plan offers it. That larger allowance is a limited window—not a permanent increase for everyone over 60.

Ask your benefits team which catch-up limit applies to you and whether you need to update your payroll election to use it.

Can the rules require you to use Roth? Yes—for some catch-up contributions

Beginning in 2026, certain higher-earning employees must make their catch-up contributions as Roth contributions rather than pretax contributions. For 2026, the requirement applies when the employee’s prior-year wages from the employer sponsoring the plan exceeded $150,000.

The wage threshold is adjusted for inflation, so check the figure for the year you are making contributions rather than relying on an old benefits guide.

Here are three important distinctions:

  • It’s Roth within your 401(k), not Roth instead of your 401(k). You are still saving through your workplace plan; the catch-up dollars receive Roth tax treatment.
  • The requirement targets catch-up dollars—not all of your contributions. It does not, by itself, require your regular contributions or existing pretax balance to become Roth.
  • The test is not your household’s combined income. It generally uses your prior-year Social Security wages from the employer sponsoring the plan, reported in Box 3 of your W-2; special employer situations can require additional review.

If you changed employers, received a large bonus, or are unsure which wages count, ask payroll to confirm how the rule applies to you.

Check the effect on your paycheck

Traditional pretax contributions generally reduce taxable income today. Roth contributions do not provide that upfront income-tax break, although qualified withdrawals are tax-free.

Moving the same contribution amount from pretax to Roth can therefore leave less in your take-home pay. Before setting your election, ask payroll for an estimate so you can budget for the difference.

Don’t assume your old contribution percentage will produce the same paycheck—or that your old election handles catch-ups the way you expect.

A Roth catch-up doesn’t mean everything should go Roth

Even if your catch-up contributions must be Roth, choosing the tax treatment of your regular contributions remains a separate planning question. The Wall Street Journal article cautions that giving up a pretax deduction can be costly during peak earning years, particularly if you expect a lower tax rate on retirement withdrawals.

Instead of asking, “Should I switch everything to Roth?” ask:

“How should my required Roth catch-ups fit with the rest of my savings?”

If you are also considering converting existing pretax savings to Roth, evaluate that separately. A lower-income period after leaving work but before required withdrawals begin may present a planning opportunity—but a conversion deserves its own tax analysis.

Your close-to-retirement benefits checklist

Before confirming your elections, ask:

  • Which regular and catch-up contribution limits apply to me this year?
  • Am I eligible for the higher catch-up allowance for ages 60–63?
  • Must my catch-up contributions be Roth?
  • How will payroll handle those contributions, and do I need a separate election?
  • If my plan doesn’t offer Roth, what does that mean for my ability to make catch-up contributions?
  • What will my take-home pay look like?

The takeaway: Catch-up contributions can give you another opportunity to strengthen your retirement savings. But as retirement gets closer, the amount you save and the tax treatment of those dollars deserve attention together.

This article is educational and is not individualized investment or tax advice. Contribution limits and wage thresholds can change, and plan-specific rules matter. Confirm current requirements with your benefits administrator and consult your financial advisor or tax professional before acting.