IRS Update On 401(k) Catch-up Contributions

October 5, 2023
The IRS recently decided to announce a two-year delay to their new rule of requiring 401(k) catch-up contributions to be made as Roth contributions. While this only affects 401(k) participants who are at least 50 years old, it allows high income earners to benefit from the additional pre-tax deferrals for two more years which helps limit taxable income. This two-year delay changes the new rule start date to 2026. While the new rule will change how much can be deferred into a 401(k) pre-tax, it will force more funds into Roth 401(k) which will help diversify tax liability.

At Brandywine Oak, we guide our clients through the nuances of new regulations to ensure their maximizing their investment savings and limiting the exposure to taxes over their lifetime. To learn more about this topic, please read

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