Pension Catch-Up Changes: Key Updates for 2025 and Beyond

In 2025, significant changes are set to transform pension plan contributions with an added catch-up provision specifically targeting taxpayers aged 60 to 63. This initiative, followed by a 2026 mandate, will require that higher-income taxpayers make their catch-up contributions through Roth accounts. These changes represent a pivotal shift in retirement planning strategies, with implications for how funds can be utilized later in life.

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