Starting 2026 401K Catch up is now in Roth with After Tax Money

[Anonymous]

So does this make it less desirable to do the closest you get to retirement. Meaning you retire at 67 and now income will fall. The Roth catch up is a lot less valuable from 62-67 that it is for someone 50-55.

Who voted for this? I think we should give most. A lot would pick Roth 50-60 but people 60-67 may not want it.

[Anonymous]

I am 62 and I am okay with it. Tax on catchup $7000? won't be that much. I am trying to move money to ROTH as much as I can so it doesn't bother me.

[Anonymous]

Anonymous wrote:I am 62 and I am okay with it. Tax on catchup $7000? won't be that much. I am trying to move money to ROTH as much as I can so it doesn't bother me.

But your age is super catch up all Roth.

In year I retire I plan to max out 401k early in year and then retire so at least that year a Roth is not much value

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am 62 and I am okay with it. Tax on catchup $7000? won't be that much. I am trying to move money to ROTH as much as I can so it doesn't bother me.

But your age is super catch up all Roth.

In year I retire I plan to max out 401k early in year and then retire so at least that year a Roth is not much value

You're planning to be retired for more than that one year, though. Whether to put that portion of that year's income into Roth vs. taxable I would think would favor Roth unless you want to spend it immediately because any growth on the taxable will continue to be taxed (taxed again when Roth is never taxed again). Even if you do need to spend it that year, it might make sense to do Roth and spend money you already had, depending on your circumstances.

It's not a bad idea simply because the rules have changed because that's not the comparison that affects you at decision time.