Changes to 401(k) Tax Break
A popular tax break for workers nearing retirement age is set to change in 2026, limiting access to high earners.
The current rule allows workers to make extra catch-up contributions on a before-tax basis, providing an upfront tax break by reducing their taxable income.
However, starting in the 2026 tax year, high earners above the income threshold will no longer have this option.
High earners over the income threshold won't have the option to make catch-up contributions on a before-tax basis.
This change will affect some Americans who will lose access to this popular tax break.
Авторское резюме: Changes to 401(k) tax break start in 2026.