New rules eliminate 401k catch-up tax benefit for high earners beginning in 2026
Changes to 401(k) Contributions for High Earners A notable tax benefit for those approaching retirement—specifically the ability to make additional contributions—will see some changes next year, particularly affecting higher-income individuals. Recently, the IRS implemented new guidelines connected to the SECURE 2.0 Act from 2022. Starting in tax year 2026, individuals earning over $145,000 in the […]
High-income earners may soon forfeit a tax benefit due to this 401(k) change.
Major changes are on the horizon for 401(k) plans that could affect tax breaks for high-income earners, according to experts. As we look toward 2025, employees will have the opportunity to defer up to $23,500. For those aged 50 and above, there’s an extra $7,500 allowed, labeled as a “catch-up contribution.” Interestingly, for individuals aged […]
New 401(k) catch-up regulation could affect more Long Islanders
Recent changes to federal retirement plan regulations could significantly impact many residents of Long Island, where salaries tend to be high due to the region’s elevated living costs, experts indicate. Starting in 2027, Americans aged 50 and above earning $145,000 or more will be required to contribute their catch-up contributions to 401(k) plans as after-tax […]
A new regulation will affect the tax-deferred status of certain 401(k) contributions. Here’s who will be impacted.
Next year, new regulations will impact high-income individuals making “catch-up” contributions to 401(k) plans or similar tax-deferred retirement accounts. These rules, established by the Safe 2.0 Retirement Act, will effectively remove the immediate tax benefits traditionally associated with such catch-up contributions alongside standard 401(k) contributions, as well as those from 403(b), 457(b), simplified employee pension […]
Peter Thiel’s $5 billion tax-exempt account led to a new 401(k) regulation affecting high-income Americans over 50.
Starting in the 2026 tax year, older workers with incomes exceeding a certain limit will be unable to make traditional 401(k) catch-up contributions. Specifically, those over 50 who earned more than $145,000 in the previous year will only be allowed to make post-tax (Roth) catch-up contributions. The IRS plans to evaluate the final regulations and […]
XRP Takes on a Retirement Angle: Expert Labels It a 401(k)
Legislators Advocate for 401(k) Access to Crypto This week, an interesting statement came from a decentralized exchange on the XRPL, which compared 401(k) plans to XRP, claiming they essentially serve the same purpose: to enhance long-term value for investors. A group of nine lawmakers, which included House Committee Chairs French Hill and Anne Wagner, has […]
Major GOP lawmakers support Trump’s directive for including crypto and other alternative assets in 401(k) plans
Support for Trump’s Move on Alternative Assets in 401(k) Plans A group of prominent Republican lawmakers in the House of Representatives is backing an initiative from the Trump administration that aims to incorporate alternative assets, including cryptocurrencies, into 401(k) plans. Among them, R-Ark, who chairs the House Financial Services Committee, along with R-Mo, head of […]
SEC Chairman Paul Atkins presents a plan for access to private markets in 401(k) accounts
SEC Chairman Discusses Expanded Access to 401(k) Investments SEC Chairman Paul Atkins recently remarked during an interview on “Mornings with Maria” that the Trump administration’s initiative to allow 401(k) retirement accounts to tap into private market investments could significantly benefit average Americans. He emphasized that this move would provide accessible options that were previously restricted. […]
Treasury and IRS complete regulation on 401(k) catch-up contributions and its implications for higher-income earners.
kate_sept2004 | E+ | Getty Images This week, the IRS and the US Treasury wrapped up new provisional guidelines from the Safe 2.0 Act of 2022, which includes provisions for catch-up contributions for workers aged over 50 in 401(k) and other retirement plans. Starting in 2027, contributions for catch-up will change, particularly for those who […]
The Secret to a Successful 401(k)
Understanding Retirement Savings Decisions Saving for retirement involves some critical choices, like when to start, how much to save, and where to invest. Lately, investment choices have been in the spotlight, especially following an executive order from President Trump. This order calls for regulators to develop a framework that allows 401(k) plans to include alternative […]