The Roth Revolution: Navigating New Catch-up Rules & RMDs

New Roth 401k rules 2026: what they mean for your retirement strategy

In Episode 2 of Decoding Your Money, host Bob Powell sits down with Denise Appleby to break down the new Roth 401k rules for 2026 and how they could reshape retirement planning decisions.

With Congress pushing more savers toward Roth-style taxation, understanding these changes is essential for high earners and pre-retirees alike.

The Roth mandate for high earners

One of the biggest updates under the new Roth 401k rules 2026 is the requirement that certain catch-up contributions must be made as Roth contributions.

For W-2 earners making over $150,000, this means:

Catch-up contributions may no longer be pre-tax

Contributions will be made with after-tax dollars

Future withdrawals may be tax-free if rules are met

This shift could significantly impact tax planning strategies for higher-income workers.

The “Super Catch-Up” for ages 60–63

The episode also explores the enhanced catch-up contribution limits — often referred to as the “Super Catch-Up.”

For individuals between ages 60 and 63:

Contribution limits are temporarily increased

This creates a window to boost retirement savings

Strategic planning is needed to decide between Roth and pre-tax contributions

Understanding how to use this provision effectively is a key part of adapting to the new Roth 401k rules 2026.

Strategic Roth conversions and backdoor strategies

Appleby highlights the importance of careful execution when using Roth strategies.

Topics discussed include:

Managing split distributions between pre-tax and Roth accounts

Navigating the “backdoor Roth” strategy

Avoiding the pro-rata rule, which can unexpectedly increase taxes

These strategies can offer long-term tax advantages but require precise planning.

Required minimum distributions (RMDs) updates

The rules around required minimum distributions continue to evolve.

Key updates include:

The current RMD age of 73

A future increase to age 75

A reduced but still significant 25% excise tax for missed distributions

Understanding these changes is critical to avoiding penalties and optimizing withdrawal strategies.

The “Trump Account” and planning for children

The episode also introduces a new pilot concept sometimes referred to as the “Trump Account.”

This initiative focuses on:

Early contributions for children

Comparing these accounts to traditional 529 plans

Exploring long-term tax-advantaged growth opportunities

While still evolving, it reflects a broader shift toward early, tax-efficient saving strategies.

Women and the coming wealth transfer

Appleby also discusses a major demographic trend: women are expected to inherit a significant share of wealth in the coming decades.

This raises important planning considerations, including:

Managing inherited IRAs correctly

Avoiding costly distribution mistakes

Understanding updated beneficiary rules

These factors make education and proactive planning increasingly important.

Why the new Roth 401k rules matter

The new Roth 401k rules 2026 represent a broader shift in retirement policy — moving from tax-deferred savings toward tax-free distributions in the future.

Failing to understand these changes could lead to:

Higher-than-expected tax bills

Missed planning opportunities

Inefficient retirement income strategies

The bottom line

Retirement planning is becoming more complex, not less.

By understanding how Roth rules, catch-up contributions and distribution requirements are evolving, individuals can make more informed decisions and build more tax-efficient retirement strategies.