From an article:
“Higher catch-up contributions. Starting January 1, 2025, individuals ages 60 through 63 years old will be able to make catch-up contributions up to $10,000 annually to a workplace plan, and that amount will be indexed to inflation. (The catch-up amount for people age 50 and older in 2023 is currently $7,500.)”
“Starting in 2026,1 if you earn more than $145,000 in the prior calendar year, all catch-up contributions to a workplace plan at age 50 or older will need to be made to a Roth account in after-tax dollars. Individuals earning $145,000 or less, adjusted for inflation going forward, will be exempt from the Roth requirement.”
So my wife makes over $145k but I don’t any longer (Covid screwed me). She just turned 50 and I’m 55. Questions:
1) Is this a Roth 401K or can she just go do a Roth on her own if the company doesn’t have a Roth?
2) Since both of us combine to make over $145k, can I still max out with catch-up limits? I can’t find anything on the rules combining salaries for 401K catch-up rules like I can for married couple limits on a regular Roth.
3) On how they combine pre-tax and Roth, if my wife in 2026 does the max of say $25,000 then wants to do catch-up of say $8,000 (Assumimg it goes up), the company just takes $25k pre-tax out then $8000 post-tax?
Thanks.
“Higher catch-up contributions. Starting January 1, 2025, individuals ages 60 through 63 years old will be able to make catch-up contributions up to $10,000 annually to a workplace plan, and that amount will be indexed to inflation. (The catch-up amount for people age 50 and older in 2023 is currently $7,500.)”
“Starting in 2026,1 if you earn more than $145,000 in the prior calendar year, all catch-up contributions to a workplace plan at age 50 or older will need to be made to a Roth account in after-tax dollars. Individuals earning $145,000 or less, adjusted for inflation going forward, will be exempt from the Roth requirement.”
So my wife makes over $145k but I don’t any longer (Covid screwed me). She just turned 50 and I’m 55. Questions:
1) Is this a Roth 401K or can she just go do a Roth on her own if the company doesn’t have a Roth?
2) Since both of us combine to make over $145k, can I still max out with catch-up limits? I can’t find anything on the rules combining salaries for 401K catch-up rules like I can for married couple limits on a regular Roth.
3) On how they combine pre-tax and Roth, if my wife in 2026 does the max of say $25,000 then wants to do catch-up of say $8,000 (Assumimg it goes up), the company just takes $25k pre-tax out then $8000 post-tax?
Thanks.
Statistics: Posted by Carnell04321 — Mon Apr 22, 2024 2:20 pm — Replies 6 — Views 592
