401k Catch-Up Rules Changed for Workers Earning Over $150,000 This Year

"The age when you must start withdrawing from your 401(k) has shifted upward twice in recent years. What was once 72 became 73 in 2023, and will rise again to 75 in 2033 for younger savers. Each additional year of deferral allows your balance to compound tax-free longer, potentially adding tens of thousands in growth for workers with substantial savings."

"The SECURE Act 2.0, signed into law in December 2022, introduced a staggered rollout of changes affecting when you must withdraw money, how much you can save, and whether those savings are taxed now or later. Most workers don't track legislative updates to retirement policy. But these changes shift the math on compounding, tax exposure, and withdrawal flexibility for millions of Americans saving through employer-sponsored plans."

SECURE Act 2.0, signed into law in December 2022, introduced a staggered rollout of changes affecting withdrawal timing, contribution behavior, and tax treatment of retirement accounts. Required minimum distribution (RMD) age rose from 72 to 73 in 2023 and will increase to 75 in 2033 for younger savers, allowing additional tax-deferred compounding that can add tens of thousands for substantial balances. RMDs were eliminated for Roth 401(k) accounts starting in 2024. New employer plans must auto-enroll workers at 3–10% starting contributions with annual increases to 10%, while small, very new, and church or government plans remain exempt.

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