Beginning in 2026, an important change under the SECURE 2.0 Act will affect how certain workers age 50 and older make catch-up contributions to their 401(k) plans.

If you are a high earner, your catch-up contributions may be required to go into a Roth account instead of being made pre-tax. Below is a clear breakdown of what’s changing, who it affects, and how contribution limits work at different ages.

The Core Rule

Starting January 1, 2026:

If you are age 50 or older and your prior-year W-2

"The investment landscape has changed dramatically, and new strategies are constantly emerging," says Jared Johnson, CFP®, Wealth Manager and Shareholder at Echo Wealth Management. "Our role is to thoughtfully integrate innovative solutions that strengthen portfolios while staying aligned with each client’s long-term plan."

"A financial plan is only as good as its execution," says Jared Johnson, CFP®, Wealth Manager and Shareholder at Echo Wealth Management. "My role is to make sure great strategy turns into real-world outcomes."

With nearly eight years at Echo Wealth Management, Jared sits at the intersection of financial planning and investment execution. As a shareholder and a key steward of portfolio implementation, he helps ensure that every investment decision reflects not just market conditions, but each

By Jared Johnson, CFP®
Shareholder, Wealth Manager

Starting in 2026, high-income earners face a significant shift in how catch-up contributions to retirement plans must be structured. Under final regulations issued by the IRS in response to the SECURE 2.0 Act, individuals age 50 and older earning more than $145,000 in prior-year wages will be required to make all catch-up contributions on a Roth basis—post-tax dollars only.

This is more than a procedural change. For affluent individuals

High earners in Minnesota have a unique opportunity to benefit from the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. With several federal changes taking effect for tax year 2025—and some set to diminish the following year—Echo Wealth Management encourages clients to take timely, strategic action.

Relief Through SALT Deduction Expansion

Beginning in 2025, the state and local tax (SALT) deduction limit will temporarily increase from $10,000 to $40,000. “It’s wonderful news

The One Big Beautiful Bill (OBBBA), signed into law on July 4, 2025, introduced sweeping federal tax changes that impact estate and gift planning. While many of these updates appear favorable at first glance, Minnesota residents face unique state-level challenges that require thoughtful coordination.

“On the surface, these changes look like good news,” says Echo Huang, CFA, CFP®, CPA, founder and president of Echo Wealth Management. “But Minnesota’s estate tax rules remain restrictive, and