"Understanding the Impending Loss of a Key 401(k) Benefit for Millions of Americans"

Millions of Americans, particularly higher earners, are set to lose a popular 401(k) benefit due to changes brought about by the SECURE 2.0 Act. Starting in 2026, catch-up contributions for older, higher earners will have to be designated as after-tax Roth contributions instead of regular 401(k) ones. This change has significant tax implications and removes the upfront tax break offered by traditional 401(k)s for catch-up funds. While it may reduce tax savings for high earners in the short term, the shift to Roth accounts offers tax-free growth and withdrawals in retirement. However, it also means that affected individuals will see a decrease in their take-home pay as their contributions to Roth accounts will be deducted from their paychecks.