Groom principal and policy group chair Brigen Winters was featured in CNN Business’ article, “A new rule means some 401(k) contributions will no longer be tax-deferred. Here’s who will be affected,” which examined the SECURE 2.0’s impact on catch-up contributions for higher earners.
Section 603 of SECURE 2.0 generally requires that catch-up contributions for employees with more than $145,000 in prior year FICA wages from the “employer maintaining the plan” be designated as Roth contributions, beginning as soon as January 1, 2026. Read our recent coverage of SECURE’s catch-up contribution changes here.
According to CNN Business, Winters explained that the change may alter how affected individuals experience their contributions: “You’ll owe more taxes to the federal government now because you lose pre-tax treatment (on those contributions),” he said. “Put another way, your take-home pay could be reduced.”
To read the article, click here.
