Change is life’s only constant, the Greek philosopher Heraclitus once observed. More than 2,000 years later, the premise still holds — for topics from the seismic to the mundane, like saving money for retirement. And while change is often unsettling, many of the alterations in rules governing retirement accounts that take effect in 2026 can simplify building up the savings necessary to live the life you want when you stop working full-time. Here’s a look at the new standards and how they might affect your ...

Core Insights - Fall is an optimal time for baby boomers to refine their financial strategies before year-end deadlines, focusing on RMDs and charitable giving to lower taxes and enhance retirement savings [1][2] Group 1: Required Minimum Distributions (RMDs) - Boomers aged 73 or older must adhere to strict RMD deadlines, with penalties for non-compliance; reviewing distribution amounts now allows for corrections and exploration of charitable giving options [3] - Financial advisors recommend aligning withdrawals with tax strategies before year-end, as RMDs can significantly affect annual financial plans [4] Group 2: Retirement Contributions - Working boomers can utilize catch-up contributions to reduce taxable income and enhance retirement savings, with additional contributions of $7,500 for 401(k) and $1,000 for IRA available for those aged 50 and older in 2025 [5] Group 3: Charitable Giving - Charitable contributions made before December 31 can lower taxable income while supporting preferred causes; reviewing taxable accounts in the fall is advisable for strategic gifting [5][6] - Tax-loss harvesting and donating appreciated stock or making QCDs from IRAs are effective strategies to reduce taxable income while contributing to charitable causes [6] Group 4: Medicare Coverage - The Medicare open enrollment period from October 15 to December 7 provides boomers an essential opportunity to review plan changes and avoid unexpected costs in 2026 [6]

Core Points - The IRS has introduced a new rule requiring Americans aged 50 and older earning at least $145,000 to make catch-up contributions to a Roth 401(k) starting in 2026, marking the first mandatory Roth provision in the tax code [1][4] - Catch-up contributions for those aged 50 and older will allow an additional $7,500 annually, raising the total contribution limit to $31,000 in 2025, with further adjustments expected for inflation in 2026 [2][3] - Individuals aged 60 to 63 can contribute an extra $3,750, bringing their total allowable contribution to $34,750 for the year [3] Tax Implications - Roth 401(k) contributions are made after-tax, meaning no upfront tax deduction, but withdrawals are tax-free, prompting older savers to reassess their tax situations [2][5] - The value of tax-free withdrawals from Roth 401(k) accounts increases if future tax rates rise, while a decrease in tax rates could make prior higher taxes less favorable [7] - If tax rates remain unchanged, the choice between traditional and Roth 401(k) contributions may not significantly impact the final amount available for retirement [7]