How the new 401(K) rules affect catch-up contributions

Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleNew rules for “catch-up” contributions to 401(k) retirement plans will affect high earners aged 50 or older. Employees earning over $145,000 annually will be required to make their 401(k) catch-up contributions after paying taxes, starting in 2027. This change, stemming from the Secure 2.0 Act of 2022, means high earners will pay taxes on these contributions during their working years rather than in retirement. The Internal Revenue Service and U.S. Department of the Treasury finalized these rules last week, with some plans potentially implementing them in 2026. High earners without a Roth 401(k) may be unable to make any catch-up contributions, potentially losing significant deductions. In fullMajor 401(k) change starts next year. Here’s what it means for youThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

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