High Earners Lose $1,900 in 401(k) Tax Breaks Under SECURE 2.0
Under the SECURE 2.0 law, high-earning workers over age 50 with W-2 wages above $150,000 can no longer deduct catch-up contributions to their 401(k)s on a pre-tax basis and must instead contribute post-tax money into Roth accounts. This change eliminates up to $2,700 in annual tax deductions for those in the top income brackets.