If you’re 50 and older, you might be about to lose a big tax break

Wake up, high-income earning Americans: a tax shift the size of a wrecking ball is barreling toward your retirement account. Starting in 2026, people age 50 and over who make more than $145,000 in wages (from a single employer) will no longer be allowed to make pretax "catch-up" contributions to their 401(k). Instead, those extra dollars — intended to turbocharge retirement savings in your higher-earning years — must go into Roth accounts, meaning you pay taxes now rather than later.

This is a big deal. For decades, catch-up contributions have been a cherished loophole for folks nearing retirement to shift extra savings into tax-deferred accounts, lowering their current tax bill. Who says that Congress makes tax breaks only for wealthy people? Congress has now removed that pretax catch-up