A major retirement savings perk for workers age 50 and up is getting new restrictions, according to The Wall Street Journal.

Starting in 2026, extra catch-up contributions that those workers are allowed to make to 401(k) plans will no longer be deducted from paychecks pretax.

The switch will only apply to high earners, which the IRS considers anyone with pay of more than $145,000 for the purposes of this change.

The change means many workers will pay taxes on their catch-up money up front during high-earning years instead of in lower-earning years in retirement, according to the Journal . The catch-up money would go into a Roth account, where it could later be withdrawn tax-free.

If an employer’s 401(k) plan doesn’t offer a Roth option, high earners wouldn’t be able to make catch-up

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