On December 5, Financial Advisor quoted Lisa Tavares on retirement planning strategies for the new year.
According to the article, 2026 will be a pivotal year for retirement planning, as many high-income taxpayers age 50 and older will be seeing much different rules than they’re used to when they’re making catch-up contributions to employer-sponsored retirement plans.
Tavares explained, “Roth requirement applies to a worker when the amount of Social Security wages reported by their employer in Box 3 of their Form W-2 exceeds $145,000 (as indexed for inflation in $5,000 increments). In that case, the worker’s catch-up contributions to that employer’s plan in the following year must be Roth contributions.”
Click here to access the article.