Groom principal Elizabeth Thomas Dold was featured in Investopedia’s article, “This 401(k) Change Could Impact How You Make Catch-Up Contributions,” where she discussed the tax and compliance implications of new rules on catch-up contributions.
“Hopefully, in the end, people will enjoy tax-free earnings,” said Dold. “Change is not easy for anyone, it’s hard for record-keepers and plan participants.”
According to Investopedia, she explained that “for 2026, your income will be determined by your wages on your W-2 form for 2025,” adding that the change “makes [the government] a lot of money, and that [allows] them do other things that they could pay for.”
Dold also noted that some higher-income workers may be prevented from making catch-up contributions if their plan sponsor opts not to add a Roth feature. “The IRS clarified in the proposed and final regulations that plan sponsors do not have to eliminate catch-up contributions if they don’t want to add a Roth feature—it is only those $145,000 [earners who] will not be eligible to make any catch-ups, but everyone else 50 or older can still make pre-tax catch-ups,” she said.
To read the article, click here.
