Overview
- Under Secure 2.0, workers 50 and older with prior-year FICA earnings of at least $150,000 must make 401(k) catch-up contributions to a Roth account starting in 2026.
- The base 401(k) contribution can still be traditional, with 2026 limits set at $24,500 plus an $8,000 catch-up for those 50+ or an $11,250 super-catch-up for ages 60–63.
- Plans without a Roth feature create a catch-up roadblock for affected savers, prompting guidance to max a 2026 IRA ($8,600 if 50+, $7,500 if under 50) and then use a taxable brokerage account.
- OBBBA raised the SALT deduction cap to $40,000 beginning in 2025 before a scheduled reversion in 2030, with deductibility phasing out for taxpayers above $500,000 in MAGI.
- A temporary senior deduction through 2028 offers $6,000 for people 65 and up, doubled for married joint filers, with reductions beginning above $75,000 MAGI for singles and $150,000 for couples.