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New SECURE 2.0 Act Changes Retirement Savings for High Earners

10/10/2025

Summary

Workers Face Contribution Changes

Starting in 2026, workers aged 50+ earning more than $145,000 must make catch-up contributions via after-tax Roth accounts.
The SECURE 2.0 Act implements this shift, eliminating traditional pretax catch-up contributions for high earners.
In 2025, eligible workers can contribute up to $23,500 to a 401(k), plus $7,500 for those over 50 and $11,250 for ages 60–63.
Those without Roth access may face limitations, making proactive retirement planning essential.

Summary

IRS Announces Tax Adjustments

The Internal Revenue Service (IRS) announced inflation adjustments for 2026 tax provisions affecting federal tax liabilities.
The standard deduction rises to $16,100 for single filers and $32,200 for married couples in 2026.
The earned income tax credit (EITC) will max at $8,231 for families with three or more children in 2026.
The estate tax exclusion rises to $15 million in 2026, with adjustments to child tax credits and gift tax exclusions.

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Workers Face Contribution Changes

Starting in 2026, workers aged 50+ earning more than $145,000 must make catch-up contributions via after-tax Roth accounts.
The SECURE 2.0 Act implements this shift, eliminating traditional pretax catch-up contributions for high earners.
In 2025, eligible workers can contribute up to $23,500 to a 401(k), plus $7,500 for those over 50 and $11,250 for ages 60–63.
Those without Roth access may face limitations, making proactive retirement planning essential.

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