As many retirees live on a fixed income, one of the worst things that can happen is if they find themselves paying for things without even knowing it. Whether it’s banking fees or investment account fees, even small unknowns can eat into your savings. Be Aware: Dave Ramsey Warns: This Common Habit Can Ruin Your Retirement Learn More: Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why Here are some sneaky fees that could be draining your retirement budget. Re ...

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]