For high income earners, new rules for 2025 mean you might not be able to put your catch-up money into tax-deferred or traditional TSP or 401k for that matter. This video breaks down what this means for your retirement planning and highlights the importance of understanding these changes. Understanding these new rules is crucial for maximizing your tax benefits and managing your retirement accounts effectively.

High-income earners risk losing the traditional tax break on catch-up contributions — and the 2026 Roth-only rule can change your retirement strategy entirely.

🔗 LINKS & RESOURCES
IRS official update on catch-up contributions: https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-on-new-roth-catch-up-rule-other-secure-2point0-act-provisions

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👋 WHO AM I?
CD Financial helps federal employees and near-retirees create sustainable, tax-smart retirement income. Expect weekly strategies on 401K, FERS, TSP, Social Security timing, tax planning, and health-meets-wealth habits—clear, practical, compliant.

⏱ TIMESTAMPS
0:00 Introduction and the new catch-up contribution restrictions
0:35 Why high-income earners may lose access to traditional catch-up contributions
1:13 Income thresholds by grade and step for federal employees
2:03 Why mandatory Roth catch-up can be a long-term tax advantage
2:35 Planning for high earners: splitting traditional and Roth contributions
3:01 How Roth contributions benefit spouses and heirs
3:35 City-by-city breakdown: Los Angeles, San Diego, Las Vegas, Phoenix, Austin
4:08 Strategy decisions: step increases vs. bonuses and their impact on TSP
4:40 What happens if payroll contributions are made incorrectly
5:24 Final planning reminder and guidance for next steps

Advisory services are offered through CD Financial LLC dba CD Financial, an Investment Advisor in the State of California. Insurance products and services are offered through CD Financial & Insurance Services LLC, an affiliated company.
Opinions expressed herein are solely those of CD Financial and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation.

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In this episode, Chuck D and Marcus C discuss the recent government shutdown, its effects on employees and retirees, and the importance of having a financial plan. They explore the challenges faced by those returning to work, the uncertainty for retirees, and the mental health benefits of planning and communication in relationships. The conversation emphasizes the need for preparation in the face of potential future shutdowns and the value of having a solid strategy for retirement.

The government shutdown lasted 43 days, the longest in history.
1.4 million employees were unpaid during the shutdown.
Essential employees had to work without pay, affecting their finances.
Retirees faced uncertainty with delayed pension checks and processing.
Many employees drained savings and incurred credit card debt during the shutdown.
Having a financial plan is crucial for retirement readiness.
Mental health benefits arise from having a plan and open communication.
Walking with loved ones can improve both physical and mental health.
The importance of family meals without distractions for relationship building.
Future government shutdowns may require better preparation and planning.

🔗 LINKS & RESOURCES
FREE 15-minute call: https://calendly.com/charlesdzama/complimentary-15-minute-phone-call-youtube
Newsletter: https://cdfinancial.com/newsletter

Socials:
Instagram: https://instagram.com/cdfinancial.llc/
Facebook: https://facebook.com/cdfinancial
LinkedIn: https://linkedin.com/company/cd-financial

👋 WHO AM I?
CD Financial helps federal employees and near-retirees create sustainable, tax-smart retirement income. Expect weekly strategies on 401K, FERS, TSP, Social Security timing, tax planning, and health-meets-wealth habits—clear, practical, compliant.

⏱ TIMESTAMPS
0:00 Government Shutdown Ends – What It Means for Federal Workers & Retirees
1:57 “Essential” but Unpaid – Stress, Uncertainty, and the Real Cost of Furloughs
3:39 Back Pay, Savings Drain, and Credit Card Debt After the Shutdown
6:11 Night Shifts, Contractors, and How Work Changes After a Government Shutdown
10:38 Retirees in Limbo – Pension Delays, TSP Access, and Annual Leave Payouts
12:51 “I Think I’m Done” – How the Shutdown Pushed Some Federal Workers Toward Retirement
14:59 Eligibility Basics – MRA + 30, Buying Back Military Time, and the Rule of 55 for TSP
16:36 DRP, VERA, and Early Retirement Options for Federal Employees
17:56 The Parachute Story – Why You Shouldn’t “Jump” Without a Written Retirement Income Plan
20:57 What a Real Plan Includes – Expenses, Income Sources, Assets, and Longevity
22:19 Mental & Family Health – Walks, Connection, and Managing Stress in Uncertain Times
24:35 Final Thoughts, Next Steps, and How CD Financial Can Help

Advisory services are offered through CD Financial LLC dba CD Financial, an Investment Advisor in the State of California. Insurance products and services are offered through CD Financial & Insurance Services LLC, an affiliated company.
Opinions expressed herein are solely those of CD Financial and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation.

Support the show

If you’re done working in uncertain shutdown-zones instead of on your own terms, now’s the time to lock in your retirement freedom— the longest federal shutdown in history just highlighted what it means to wait.

🔗 LINKS & RESOURCES
FREE 15-minute call: https://calendly.com/charlesdzama/complimentary-15-minute-phone-call-youtube
Newsletter: https://cdfinancial.com/newsletter

Socials:
Instagram: https://instagram.com/cdfinancial.llc/
Facebook: https://facebook.com/cdfinancial
LinkedIn: https://linkedin.com/company/cd-financial

👋 WHO AM I?
CD Financial helps federal employees and near-retirees create sustainable, tax-smart retirement income. Expect weekly strategies on 401K, FERS, TSP, Social Security timing, tax planning, and health-meets-wealth habits—clear, practical, compliant.

⏱ TIMESTAMPS
0:00 Intro – Why this shutdown matters for your federal retirement plan
0:35 43 Days Unpaid – How the longest U.S. government shutdown exposed your risk
1:00 Credit-card debt & savings wiped out – real stories from federal employees
1:33 The wake-up call – “I want out of this cycle”
2:01 Retirement triggers – 30 years @ 57 vs. 20 years @ 50 for federal service
2:57 Why you need a parachute – the danger of walking away without a plan
3:32 The rules you must know – penalty-free retirement options explained
4:05 Putting together your exit strategy – step-by-step guide for federal employees
4:38 Get a second opinion – why one wrong election can cost you years
5:12 Wrap-up & next steps – your path from views to value

#FederalRetirementPlanning #GovernmentShutdownImpact

Advisory services are offered through CD Financial LLC dba CD Financial, an Investment Advisor in the State of California. Insurance products and services are offered through CD Financial & Insurance Services LLC, an affiliated company.
Opinions expressed herein are solely those of CD Financial and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation.

Support the show