The IRS and U.S. Department of the Treasury this week finalized rules for certain provisions from the Secure 2.0 Act of 2022, including catch-up contributions for 401(k) and other plans, which apply to workers age 50 and older.

Starting in 2027, catch-up contributions generally must be after tax (also called Roth), rather than pretax, for workers who made more than $145,000 from their current employer during the previous year. But some plans could make the change in 2026 "using a reasonable, good faith interpretation of statutory provisions," the IRS said.

In the meantime, those investors can pick between pretax and Roth retirement catch-up contributions, assuming their workplace plans have both choices and their cash flow permits, experts say.

More from Financial Advisor Playbook

See Full Page