Some Americans will lose popular 401(k) tax break in major retirement rule change starting 2026

A popular tax break for workers nearing retirement age to make extra catch-up contributions is changing next year, which will limit access to some high earners.The IRS issued new regulations last month to implement a provision of a 2022 law known as the SECURE 2.0 Act, which requires that high earners who earned $145,000 or more in income the prior year make 401(k) catch-up contributions to after-tax Roth accounts starting with the 2026 tax year.Under the rules that will remain in effect through the 2025 tax year, workers aged 50 and up were eligible to make their 401(k) catch-up contributions