The Roth Catch-Up Shift for High Earners #shorts

Halbert Hargrove • 3 days ago

Original source

What This Video Is About

The video explains the new rules for catch-up contributions, affecting individuals 50 or older who earned more than $150,000 in FICA wages in the previous year.

Major Ideas Discussed

  • As of 2026, catch-up contributions, including the standard $8,000 and the $11,250 super catch-up, must be made on a Roth basis for high earners.
  • These contributions must be made with after-tax dollars, eliminating the immediate tax deduction available with traditional 401(k) contributions.
  • Roth contributions offer tax-free future withdrawals in retirement if the account holder is 59 and 1/2 years old or older and the account has been held for at least 5 years.

What to Watch Next

Viewers should monitor the implementation of these changes and consider their impact on retirement planning strategies, particularly for high earners affected by the new rules.