Good News for People Who Make $145K: IRS Delays New Catch-Up Contribution Rule Until 2026

The IRS recently announced some welcome news for higher-income workers with 401(k)s and similar retirement plans. The agency delayed implementing a new rule that would have required catch-up contributions made by people earning over $145,000 to be directed into an after-tax Roth account.

The rule change was originally set to start in 2024, but will now be postponed until 2026 thanks to the new two-year administrative transition period. This gives savers who are both nearing retirement and earning over $145,000 two additional years to make catch-up contributions on a pre-tax basis.

Mark Henricks | Yahoo

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