A new rule is going into effect next year that will affect high earners who make “catch-up contributions” in their 401(k)s or other tax-deferred workplace retirement plans.
The rule, which was created under the Secure 2.0 retirement law, will essentially eliminate the immediate tax break for catch-up contributions that you get for the bulk of your other contributions to a 401(k) — or 403(b), 457(b), Simplified Employee Pension Plan (SEP) or SIMPLE IRA.
Here’s a breakdown of what will change and who, specifically, will be affected.
How it will work
Currently, if you’re over 50 and max out your 401(k) contributions
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