Starting next year, some Americans will witness a major change in how they can save for retirement. The IRS has issued new rules under the SECURE 2.0 Act. This will affect workers aged 50 and above who earn $145,000 or more a year. These top earners will no longer be able to make their 401(k) catch-up contributions on a pre-tax basis. Instead, they must contribute to after-tax Roth accounts.

What are catch-up contributions?

Catch-up contributions allow workers aged 50 and older to save extra money into their retirement accounts in addition to the standard contribution limit. For 2025, the Standard 401(k) contribution limit is $23,500 (for workers under 50), the catch-up contribution limit for 50+ is $7,500, and the “Super” catch-up for ages 60-63 is $11,250.

Until now, employees we

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