Key Topics Covered

The Big Change

• Starting January 1, 2026, workers earning over $145,000 must make catch-up contributions to Roth 401(k) accounts only
• No more pre-tax catch-up contributions for high earners
• This applies to anyone 50+ who earned more than $145,000 from their employer in the previous year

Understanding Catch-Up Contributions

• Standard 401(k) contribution limit in 2025: $23,500
• Catch-up contributions for age 50+: Additional $7,500
• Enhanced catch-up for ages 60-63: Additional $11,250
• These limits will continue to increase with inflation

Traditional vs. Roth 401(k) Explained

• Traditional 401(k): Pre-tax contributions, immediate tax break, taxed upon withdrawal in retirement
• Roth 401(k): After- ...