What are the 2026 retirement plan limits? The 401(k) elective deferral limit rises to $24,500, the age-50 catch-up to $8,000, and a new “super catch-up” lets employees aged 60–63 add $11,250. The 2026 retirement plan limits also bring a major SECURE 2.0 change: high earners must now make catch-up contributions as Roth. If you sponsor…
What is the 4% rule, and how do taxes change the picture? The 4% rule is a widely cited retirement rule of thumb: withdraw 4% of your savings in your first year of retirement, then adjust that dollar amount for inflation each year, aiming to make a portfolio last about 30 years. It’s popular because…
Can you use 401(k) money to pay long-term care insurance premiums without the 10% penalty? Yes — within limits. Under SECURE 2.0 Act §334 (effective for distributions after December 29, 2025), a defined contribution plan may permit “qualified long-term care distributions” under new IRC §401(a)(39). The annual cap is the LEAST of: (1) the amount…
