Retirement experts suggest that the bare minimum a retired couple needs to have in savings and investments to retire comfortably in the U.S. is around $1 million. Though that sounds like a lot of money, at a 4% withdrawal rate, that’s only about $40,000 per year. Find Out: How Far $500,000 in Retirement Savings Plus Social Security Goes in Every State Read Next: 5 Clever Ways Retirees Are Earning Up To $1K Per Month From Home Now let’s say a retired couple wants to look abroad instead — where oftentimes c ...

Core Points - The IRS announced new regulations affecting 401(k) catch-up contributions starting in 2026, particularly for high-income earners [1][4] - An income test will be implemented, where individuals earning over $145,000 will only be able to make catch-up contributions to a Roth 401(k) [4][5] - This change introduces an upfront tax burden for high-income earners, as contributions to a Roth 401(k) are made with after-tax income [5] Summary by Sections Contribution Limits - For 2025, all workers can contribute up to $23,500 into 401(k) plans, with those over 50 allowed to make additional catch-up contributions [3] Income Test Implementation - Starting in 2026, workers earning over $145,000 will face restrictions on their catch-up contributions, limiting them to Roth 401(k) plans [4] Tax Treatment Differences - Standard 401(k) contributions are made pre-tax, allowing for tax deductions, while Roth 401(k) contributions are made after-tax, resulting in no immediate tax benefits [5] Impact on Workers - Approximately 20% of individuals aged 45 to 54 earn over $100,000, indicating that millions could be affected by the new regulations [6] - Employers are encouraged to confirm if they offer a Roth 401(k) plan, as nearly 93% do [6]

Core Points - New IRS rules will restrict catch-up contributions for high earners aged 50 and up, effective from 2027, with some plans potentially implementing changes as early as next year [1][2] - Workers earning over $145,000 in the previous year will only be able to make catch-up contributions to their 401(k) and other workplace plans using after-tax (Roth) dollars, eliminating the option for pretax contributions [1][4] Summary of New Rules - Catch-up contributions allow individuals aged 50 and above to contribute more to retirement accounts, with the standard 401(k) contribution limit set at $23,500 for 2025, plus an additional $7,500 for catch-up contributions [4] - Workers aged 60-63 can qualify for a temporary "super" catch-up contribution of $11,250 [4] - High earners will lose the tax deduction associated with pretax contributions, which lower taxable income in the contribution year, while Roth contributions do not provide current tax reductions but allow for tax-free growth and withdrawals in retirement [4][5] Implications for High Earners - High earners will be required to make all catch-up contributions into the Roth bucket, which may limit their tax strategy options [5] - For those earning less than $145,000, the choice between pretax and Roth contributions remains available [5] - Roth contributions can provide a diversified tax strategy in retirement, offering a mix of taxable and tax-free accounts, which could be beneficial if tax rates increase in the future [6]

Group 1 - The executive order signed by President Trump allows Americans to include alternative assets such as cryptocurrency, real estate, and private equity in their 401(k) retirement savings [1][2] - This order is seen as a significant win for the cryptocurrency industry, which has been advocating for the inclusion of private assets in retirement plans [2][4] - Following the announcement, the price of bitcoin increased by 1% in the stock market, indicating a positive market reaction [2] Group 2 - The executive order opens up a "huge new pool" of retirement funds for alternative asset managers, allowing for greater diversification in retirement portfolios [4] - However, private companies are not mandated to include cryptocurrency in their 401(k) plans, and they must assess the associated risks and liabilities before doing so [5] - The incorporation of alternative assets into retirement accounts is expected to be a gradual process, with traditional index funds being recommended for the average investor [7]