Some retirement savers lose a key tax break under new IRS rule

The IRS is changing how Americans can make catch-up contributions to their workplace retirement accounts, which could have significant implications for retirement planning and budgeting.

A new rule took effect at the outset of 2026 that altered how high-income earners make catch-up contributions to their workplace 401(k) retirement plan, as those over the age of 50 whose earnings subject to payroll tax are $150,000 or more must make catch-up contributions to a Roth 401(k).

The change...