If You Earn $145K+, This Affects You

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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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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