Will the 2026 reform affect Roth IRAs, 401(k)s, and inherited retirement accounts differently?

1. 401(k)s: bigger limits, new Roth catch‑up mandate for higher earners

The IRS raised the 401(k) elective deferral limit to $24,500 for 2026 and increased catch‑up amounts — $8,000 generally and an $11,250 “super catch‑up” for ages 60–63 — letting savers defer more pre‑tax or Roth dollars ^{[1] [2]}. Separately, SECURE 2.0’s implementation in 2026 forces participants whose prior‑year FICA wages exceed the applicable threshold (reported around $145,000–$150,000 in coverage) to designate any catch‑up contributions as Roth (after‑tax) rather than traditional pre‑tax, which shifts taxation to the contribution year and raises immediate tax revenue ^{[3] [6] [2]}. News coverage and plan‑sponsor guidance emphasize employers must update plan documents and payroll systems to handle mandatory Roth catch‑ups ^{[3] [7]}.

2. Roth IRAs: higher income windows but same contribution mechanics

Roth IRA eligibility is altered by higher MAGI phase‑out ranges for 2026: single and head‑of‑household filers can make full Roth contributions up to $153,000 (phase‑out to $168,000), and married filing jointly up to $242,000 (phase‑out to $252,000) — modest upward inflation adjustments that allow more households to contribute directly ^{[4] [5]}. The total IRA contribution limit increases to $7,500 for 2026 and catch‑up amounts for IRAs also rise, but the mechanics of Roth IRA withdrawals and preferential tax treatment remain unchanged in the cited reporting ^{[4] [1]}. For taxpayers above the phase‑out range, outlets note “backdoor Roth” strategies remain a workaround, but sources focus on income bands rather than legislative changes to conversion rules ^[8].

3. Inherited retirement accounts: reporting silent on 2026 substantive rule changes

The provided sources catalog contribution limits, Roth catch‑up mandates, and income phase‑outs but do not discuss statutory changes in 2026 to the tax treatment or distribution timing for inherited retirement accounts (for example, SECURE Act legacy rules or new beneficiary distribution rules are not covered in these items). Therefore, available sources do not mention any 2026 reform that specifically alters the core inherited‑account rules in the coverage set (not found in current reporting).

4. How the changes interact — practical winners and tradeoffs

Higher contribution caps and increased Roth eligibility windows let many savers put more into tax‑advantaged accounts and, in some cases, pay tax now for tax‑free growth later ^{[1] [4]}. But the mandatory Roth catch‑up for higher earners changes planning calculus: affected savers lose the option to defer taxes on catch‑up dollars and may face higher current tax bills while potentially gaining tax‑free withdrawals in retirement ^{[3] [2]}. Analysts cited by mainstream outlets urge savers near the FICA wage threshold to consult plan administrators and advisors because employers’ plan designs and whether plans accept Roth deferrals will determine whether those catch‑ups are feasible ^{[7] [3]}.

5. Conflicting thresholds and reporting; check your plan documents

News outlets differ slightly in reported thresholds (some cite prior‑year FICA wages of $145,000, others $150,000); IRS technical notices specify the indexed dollar amount for determining when catch‑ups must be Roth, and practitioners note indexing can shift the cutoff — so individuals should read the IRS Notice and their plan’s terms ^{[6] [9] [3]}. Multiple sources warn employers and participants to verify whether a plan allows Roth deferrals — if not, affected employees might be barred from making required Roth catch‑up contributions ^{[3] [7]}.

6. What to do now — clear action items

Review your 2026 plan documents and payroll reporting to confirm whether your employer accepts Roth deferrals and how catch‑up elections will be handled; confirm whether your prior‑year FICA wages put you above the Roth‑catch‑up threshold ^{[3] [7]}. If you’re near Roth IRA phase‑outs, recalculate MAGI to see if you can contribute directly or need a backdoor route ^{[4] [8]}. For inherited accounts, consult tax counsel because the current reporting set does not identify 2026 legal changes to beneficiary distribution rules (not found in current reporting).

Limitations: this reporting set focuses on IRS 2026 contribution limits, catch‑up rules and phase‑outs; it does not provide comprehensive legislative text or guidance on inherited‑account distribution law changes, so readers should consult the IRS notices and a tax advisor for account‑specific decisions ^{[4] [3] [2]}.