If your earned income from self-employment income combined with your W-2 wags from your regular day job (the non self-employed business) exceeds $145,000 and this figure is indexed for inflation in future years, starting on January 1, 2026 SECURE 2.0 Act requires catch-up contributions (aka the age 50 or older catch-up contribution) for solo 401k participants to be made on a Roth basis, so to the Roth solo 401k.
SECURE 2.0 calls for solo 401k catch-up contributions, which require the account holder to be age 50 or older, to be made as a Roth solo 401k contribution if you are a high self-employed individual, which was supposed to be effective in 2024; however, the IRS has delayed the effective date to January 1, 2026 to allow plans to implement this new rule. See IRS Notice 2023-62 for more information.
