SECURE Act 2.0: P&G 401(k) Catch-Up Changes for 2026

If you’re a Procter & Gamble employee age 50 or older, you may have received a note today from P&G Benefits Services about an upcoming change to the Savings Plan. A new rule under the SECURE Act 2.0 will affect how catch-up contributions work starting in 2026, and many P&G'ers will feel the impact.

Here’s a straightforward look at what’s changing, why it matters, and what I recommend.

1. The Big Change

For years, employees age 50+ have been able to make catch-up contributions on either a pre-tax or Roth basis. That flexibility is going away for a large group of employees.

Beginning January 1, 2026, if:

• You’ll be age 50 or older during 2026, and
• Your 2025 Social Security wages are above $150,000,

...then every dollar of catch-up you make must be Roth.  There’s no option to make pre-tax catch-ups anymore unless you opt out of catch-ups entirely.

• This rule isn’t unique to P&G — it applies to all employers.
  

2. How This Plays Out Inside the P&G Savings Plan

The Savings Plan already moves your contributions into “catch-up mode” once you hit the normal IRS limit (or your P&G limit if PST contributions push you up against it).

Here’s what happens starting in 2026:

• Your regular contributions continue as usual (pre-tax or Roth, whichever you’ve elected).
• Once you hit the IRS limit, any remaining contributions automatically become Roth catch-up dollars.
• You don’t have to do anything unless you want to stop catch-ups completely.

• Your payroll percentage doesn’t change — only the tax treatment of the “extra” dollars changes.
  

3. Should You Opt Out?

Short answer: Probably not.

Why?

Roth is genuinely valuable later in life

Many longtime P&G employees build up large pre-tax balances through PST and years of pre-tax contributions. Adding a Roth bucket gives you more control over your tax picture in retirement.

Catch-up contributions increase your annual tax-advantaged savings

In 2026, catch-up adds roughly $8,000 of additional savings space. Opting out means giving that up entirely.

It’s simple — nothing to change

You don’t need to redo your elections. The plan handles the switch once you reach the limit.

Higher-income P&G retirees often stay in strong tax brackets

• Between PST, after-tax growth, Social Security, and other assets, many P&G retirees find themselves with meaningful taxable income in retirement. Roth dollars can help smooth that out.
  

4. What To Do Now



Check your current contribution percentage

• Make sure it still gets you to the IRS limit.

If you received the P&G notice today, don’t worry

• You don’t need to do anything unless you want to stop catch-ups.

Expect your catch-ups to be Roth in 2026.

• The change will happen automatically.