The SECURE 2.0 Act continues to reshape retirement planning, and one of its most significant provisions will take effect on January 1, 2026. Higher-income workers aged 50 and older will be required to make their 401(k) catch-up contributions on a Roth (after-tax) basis. This shift has major tax implications for both employees and employers.
Why It Matters
Implications for Planning
Looking Ahead
This provision reflects a broader trend: encouraging Roth contributions to front-load federal tax revenue while offering workers tax-free retirement income later. For businesses and advisors, the next 12–18 months should focus on system updates, employee education, and recalibrated tax strategies.
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Retirement tax rules are evolving quickly and missing the details can cost clients thousands.
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