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]

Group 1 - The optimal timing for Roth IRA conversions is not fixed and can vary based on individual circumstances [2] - Market declines can present opportunities for conversions, as recovering investments can lead to greater tax-free growth in the Roth IRA [2][3] - The primary factor influencing the decision to convert is the difference in tax rates between the current rate during conversion and the anticipated rate during future withdrawals [3][4] Group 2 - Converting when in a higher tax bracket (e.g., 35%) compared to a lower anticipated bracket (e.g., 22%) in retirement is generally not advisable [4] - Early-year conversions allow for potential growth throughout the year, but they also carry risks if income unexpectedly increases, leading to a higher tax bracket [5]

Manufacturing Expansion & Investment - Eli Lilly is investing $5 billion in a new US manufacturing site in Virginia, specializing in active pharmaceutical ingredients (API) and drug product for cancer, autoimmune diseases, and advanced therapies [1] - The new factory will enable Eli Lilly to produce targeted chemotherapies or antibody drug conjugates for the first time [1] - Eli Lilly's goal is to increase manufacturing capacity and bring more manufacturing work in-house [2] - Since 2020, Eli Lilly's total manufacturing investments amount to $50 billion, including a previously announced $27 billion investment in four new sites [4] Tax & Economic Factors - Lower US corporate tax rates (21%) influenced Eli Lilly's decision to build the API site in the US [2][3] - Previously, a 35% corporate tax rate made locating API facilities outside the US more financially attractive [3] Supply Chain & Tariffs - Eli Lilly aims to build a balanced and redundant supply chain to ensure medicine availability for patients [5] - The company is monitoring tariff developments but believes they will not significantly alter its overall strategy [5][6]

Policy Recommendation - The document suggests a policy recommendation linking body fat percentage to the tax rate [1]