Maximize Your Retirement Savings: The SECURE 2.0 “Super Catch-Up” Is Here

As we enter the 2026 tax year, new provisions from the SECURE 2.0 Act have officially taken flight. The Act introduces significant enhancements to retirement plan contributions, most notably the new “Super Catch-Up” provision for 401(k) and 403(b) plans. These changes present valuable opportunities for individuals nearing retirement and important compliance considerations for employers and plan sponsors.

Whether you are looking to accelerate your personal savings or ensuring your company’s plan remains compliant and competitive, understanding these new limits is essential.

The “Super Catch-Up”: Expanded Limits for Ages 60–63

Historically, individuals age 50 and older have been eligible to make “catch-up” contributions to their retirement accounts above the standard deferral limit. Beginning in 2025, SECURE 2.0 creates a new, higher catch-up limit specifically for individuals who attain age 60, 61, 62, or 63 during the taxable year.

For 2026, the contribution limits are as follows:

Contribution Type Age 49 & Under Age 50–59 & 64+ Age 60–63
2026 Base Deferral $24,500 $24,500 $24,500
2026 Catch-Up Limit

(Including Super Catch-up)

 N/A $8,000 $11,250
Total Potential Deferral $24,500 $32,500 $35,750

Note: The Super Catch-Up replaces the standard catch-up for individuals age 60–63; it is not an additional amount on top of the standard catch-up. Once you reach age 64, your limit reverts to the standard age-50+ amount ($8,000 for 2026).

Mandatory Roth Catch-Up Contributions for High Earners

Effective January 1, 2026, SECURE 2.0 requires that ALL catch-up contributions (including both the $8,000 Age 50+ catch-up and new Super Catch-Up amounts) must be made on a Roth (after-tax) basis for “high-earning employees”.

  • Who it affects: W-2 employees whose FICA wages exceeded $150,000 in the preceding tax year (indexed for inflation). These individuals are classified as “high-earning employees” for the purpose of the mandatory Roth catch-up rule.
  • Who it excludes:
    • Partners or self-employed individuals (those with K-1 or Schedule C income), as they do not have FICA wages. These individuals may continue to make catch-up contributions on a pre-tax or Roth basis, regardless of income.
    • This mandatory Roth requirement does not impact SEP or SIMPLE IRA plans, which are exempt from this specific provision of SECURE 2.0.
  • The “Roth or Nothing” Rule: If your plan does not currently offer a Roth feature, high-earning employees (over the $150k threshold) will be prohibited from making any catch-up contributions until a Roth option is added to the plan.

While high earners are often phased out of contributing to a Roth IRA, there are no such income limits for a Roth 401(k). If your plan offers a Roth component, you are eligible to use it. We recommend consulting a financial advisor to determine how this mandatory after-tax contribution impacts your overall tax strategy.

Action Steps

 For Individuals:

  • Confirm your eligibility: If you attain age 60 through 63 in 2026, you may contribute an additional $3,250 (the Super Catch-up) above the standard catch-up limit.
  • Review 2025 W-2, Box 3 wages: If your FICA wages exceed $150,000, ensure your 2026 catch-up contributions are directed to the Roth portion of your plan.

For Employers & Plan Sponsors:

  • Update plan documents: Amend your plan to accommodate the increased Super Catch-Up limits.
  • Coordinate with payroll: Identify employees subject to the Roth catch-up requirement and ensure proper tax treatment of their contributions.
  • Ensure Roth option availability: If your plan does not currently offer a Roth feature, high-earning employees will be unable to make catch-up contributions until a Roth option is added.

Snyder Cohn is available to work with your plan administrator, conduct employee eligibility reviews, and assist with compliance for these new requirements. Please contact your Snyder Cohn advisor for guidance tailored to your specific situation.

By: Zane Sanchez

 

Tax Payments Go Digital: Key IRS Changes for Tax Year 2025

As we kick off the 2026 calendar year, several federal administrative changes are affecting how taxpayers receive refunds and remit tax payments. To help ensure your filings and payments remain timely and accurate, we have summarized the most important updates below.

Phase-Out of Federal Paper Checks

Effective September 30, 2025, the federal government has discontinued issuing paper checks for most federal tax refunds. Direct deposit is now the standard method for receiving refunds. As a result, you may be asked by your tax preparer or the IRS to provide or confirm bank account information to facilitate direct deposit while completing your tax return.

In addition, the Treasury is in the process of phasing out its acceptance of incoming paper checks. Given these changes, we recommend using secure federal payment portals whenever possible: either using the IRS.gov/pay site for one-time payments or creating an account with the IRS through ID.me for individuals and EFTPS.gov for trusts and businesses. These platforms provide immediate confirmation for your records and eliminate reliance on postal processing. This shift aligns with new federal mandates, reduces the risk of lost or stolen mail, and generally results in faster posting of payments and refunds.

Electronic Payment Requirements for Trustees

Trustees should be aware that the IRS now requires federal tax payments for trusts to be made through the Electronic Federal Tax Payment System (EFTPS). Unlike other electronic payment options, EFTPS requires a formal enrollment process to verify the entity’s identity. Once enrolled, please keep in mind that EFTPS payments must be scheduled by 8:00 p.m. ET at least one calendar day before the tax due date to be considered timely.

  • Action required: Enroll the trust at EFTPS.gov. For EFTPS enrollment, trusts are treated as a “Business” and should select that option under “Enroll me as”
  • PIN process: After enrolling online, the IRS will mail a physical Personal Identification Number (PIN) to the address of record.
  • Timing considerations: The PIN is sent via standard mail and typically arrives within 7 to 10 business days. Payments cannot be made until the PIN is received and the account is fully activated; we would encourage you to enroll as soon as possible.
  • Lost PIN: If you have misplaced your EFTPS PIN, contact EFTPS at 1-800-555-4477. After identity verification, EFTPS can process a payment by phone and will mail a replacement PIN.

Important Note on USPS Postmarking

The U.S. Postal Service has changed certain operational practices, and local post offices may no longer apply same-day postmarks. To ensure payments and other time-sensitive filings are legally recognized as mailed ahead of the tax deadline, we recommend using the electronic payment options offered by the IRS and many states.  If a paper mailing is required, you should use Certified Mail so that you receive a confirmation receipt to prove that it was timely mailed.

The IRS is not alone in mandating electronic payments as many states have adopted similar programs.  Hopefully, this will help combat various types of fraud and keep data more secure.  We encourage you to enroll in these IRS programs soon to avoid any future delays in payments or refunds. If you have questions about these new requirements or need assistance with EFTPS enrollment, please contact your Snyder Cohn advisor.

 

by: Zane Sanchez

Congratulations to Joe and Dustin!

Snyder Cohn, PC is pleased to announce that Joe Bishop and Dustin Cutlip are now principals at the firm!

Joe Bishop has built a strong reputation at Snyder Cohn for his thoughtful approach to client service and his commitment to quality. He has provided audit, accounting, and tax services to clients in the emerging technology, rental real estate, and nonprofit industries, among others. Joe plays an important role in overseeing engagement teams and ensuring the overall quality of audit, accounting, and tax services delivered to clients. As a principal, Joe looks forward to continuing to support clients while helping teams grow and succeed.

Joe earned a Bachelor of Science degree in Accounting from Rutgers University and a Master of Science degree in Accounting and Financial Management from University of Maryland University College. He is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

Dustin Cutlip has more than 13 years of public accounting experience, specializing in partnership taxation with deep expertise in the real estate industry. He works closely with business owners and high-net-worth individuals on tax compliance and consulting matters and is known for his practical, solutions-oriented approach. His experience also includes due diligence related to property acquisitions and dispositions, helping clients evaluate tax implications, structure transactions effectively, and manage risk. As a principal, Dustin is committed to strengthening client relationships while supporting the continued growth and development of the firm and its people.

Dustin earned a Bachelor of Business Administration degree in Finance and a Master of Science degree in Accountancy from Marshall University. He is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.