BriefApril 17, 2026 · 02:17 PM
High Earners Lose Tax Deduction for 401(k) Catch-Up Contributions
Workers earning over $150,000 a year can no longer use catch-up contributions to reduce their taxable income. This requirement stems from the Secure 2.0 Act, which mandates that catch-up contributions for this income bracket be made as Roth contributions. Because Roth contributions are made with after-tax dollars, the tax deduction previously available to high earners is eliminated.
Dana Ashford
retirement planningtax strategy401(k) rules
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