This 'Gotcha' Rule for Retirement Savings Won't Hit You in 2024
When Congress passed the Secure 2.0 legislation, it changed the rules on catch-up contributions to 401(k) plans for people aged 50 and up. Under the new rules, high earners -- those earning above $145,000 -- can only make catch-up contribution to Roth-style 401(k) plans, and no longer to traditional-style ones.
Initially, that new restriction was expected to go into effect in 2024, but the IRS granted a two-year extension for "administrative transition" purposes. As a result, this "gotcha" rule for retirement savings won't hit you in 2024, but instead, it's expected to go into effect in 2026.
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Source Fool.com
