GoBankingRates: “5 Ways IRS’s New Roth Catch-Up Rule Could Affect Your Take-Home Pay”
GoBankingRates, Oct. 23, 2025 — In today’s article by Chris Adam, he explains: “Workers who are age 50 and older are going to want to pay special attention to new regulations announced by the IRS. They address multiple SECURE 2.0 Act provisions related to catch-up contributions. Those are additional contributions under a workplace retirement plan for employees at least 50 years old.”
Starting in January 2026, those aged 60 and older can make an additional contribution to their retirement accounts of $11,250. For higher earners, those who make more than $145,000, any catch-up contributions for retirement accounts must now go into a Roth account instead of the traditional option.
Marguerita Cheng, CEO of Blue Ocean Global Wealth, explains: “Individuals who are in the position to take advantage of catch-up contributions do need to be mindful of the SECURE 2.0 Act changes and the impact on current year tax savings. While the opportunity to enjoy additional tax savings today will no longer be available, the opportunity for individuals to build a larger pool of tax-retirement savings for the future can provide tax diversification in the future.
As a certified financial planner professional, Cheng said she also stresses the importance of both tax diversification and investment diversification. There are also several ways the IRS’s new Roth catch-up rule could affect your take-home pay.