#catchupcontributions

The final regulations for SECURE 2.0 Act of 2022 were released on September 15, 2025.  There is a key part of this regulation that may affect employers who sponsor a 401(k) plan.  Effective January 1, 2026, catch-up contributions made for a highly paid individual age 50 or over, as defined below, must be made on a Roth basis. To comply with this requirement, plans may adopt a deemed Roth election. This option automatically treats catch-up contributions from highly paid individuals as

Are you age 50 or older? You’ve earned the right to supercharge your retirement savings with extra “catch-up” contributions to your tax-favored retirement account(s). And these contributions are more valuable than you may think. IRA contribution amounts For 2025, eligible taxpayers can make contributions to a traditional or Roth IRA of up to the lesser of $7,000 or 100% of earned income. They can also make extra catch-up contributions of up to $1,000 annually to a traditional