09.18.25

Treasury, IRS Finalize Rule for 401(k) Catch-up Contributions

by: Kate Dore

The Internal Revenue Service and U.S. Department of the Treasury finalized rules from the Secure 2.0 Act affecting retirement catch-up contributions for workers age 50 and older. Beginning in 2027, those earning over $145,000 from their employer must make catch-up contributions to 401(k) and similar plans on a Roth (after-tax) basis rather than pretax. Some plans may adopt the rule in 2026 if done in “good faith.” Until then, eligible workers can choose between Roth and pretax contributions.

Read the full article on CNBC