The Problem With 401(k) Catch-Up Contributions for 2024

Under SECURE 2.0, if you are at least 50 years old and earned $145,000 or more in the previous year, you can make catch-up contributions to your employer-sponsored 401(k) account.

• But there’s a catch. You would have to make those extra contributions on a Roth basis, using after-tax money.

• You wouldn’t be able to get tax deductions on those catch-up contributions as you would with typical 401(k) contributions, but you could withdraw the money tax-free when you retire.

• The SECURE 2.0 Roth catch-up contribution rule won’t apply to taxpayers making $144,999 or less in a tax year.

https://www.kiplinger.com/taxes/the-problem-with-401k-catch-up-contributions?utm_term=08E1BE75-254E-40BC-A26A-C5D0160CC938&utm_content=CA5FF7F2-21D1-4054-A89B-B9FCCA2B05FD