Feature Articles
What’s New for Retirement Catch-Up Contributions in 2026
Under SECURE 2.0 rules taking effect in 2026, employees 50 and older can make standard catch-up contributions of $8,000 to their 401(k), 403(b), or 457(b) plans (for a $32,500 maximum), while participants aged 60 to 63 can contribute up to $11,250 ($35,750 maximum).
Mandatory Roth Treatment for High Earners
For individuals whose prior-year FICA wages (Form W-2, Box 3) exceeded $150,000, all catch-up contributions must now be made into a designated after-tax Roth account. Employers whose plans lack a Roth mechanism will be unable to permit high-earner catch-ups.
Businesses Regain Immediate Deduction for R&E Expenses
Reversing the TCJA requirement to amortize domestic research and experimentation costs over 5 years, the 2025 tax legislation restores 100% immediate expensing for domestic R&E expenses, providing immediate cash flow relief for innovators.
IRS Expands Digital Asset Reporting with Form 1099-DA
Brokers and centralized crypto exchanges must issue Form 1099-DA to both taxpayers and the IRS, detailing digital asset sales proceeds and cost basis information.
Tax Tips
- Don’t Let the Alternative Minimum Tax (AMT) Catch You Off Guard: Watch out for incentive stock option (ISO) exercises and high state tax adjustments that can trigger AMT liabilities.
- Prior-Year IRA Contribution Deadline: You have until the April filing deadline to fund your Traditional or Roth IRA for the prior tax year.
- Tax Details When Starting a Business: Choosing between an LLC, S corporation, or C corporation has lasting payroll tax and distribution consequences.
