As 2025 winds down, now is the time to review your retirement and tax planning strategies. With several SECURE Act 2.0 provisions already in effect, and others set to take place in 2026, understanding how these updates impact your savings opportunities can make a meaningful difference in your long-term financial goals.
At YHB, we’re helping clients navigate these updates and make informed decisions before year-end.
Key Retirement Planning Highlights:
1. New 401(k) Plan Incentives for Small Businesses
Doctors with fewer than 50 employees who started a new 401(k) plan in 2025 may qualify for startup tax credits to offset administrative and employer contribution costs. If your business has been considering a retirement plan, now may be a great time to take advantage of these incentives.
2. Roth Options for SIMPLE and SEP IRAs
Employers can now allow Roth contributions in SIMPLE and SEP IRAs, providing greater flexibility for employees who prefer after-tax savings and tax-free growth.
3. Catch-Up Contribution Changes Coming in 2026
Beginning in 2026, individuals aged 50+ earning more than $145,000 in wages from their employer will be required to make Roth catch-up contributions rather than pre-tax. This change may affect your payroll and withholding strategy, so planning ahead is key.
4. “Super Catch-Up” for Ages 60–63
SECURE Act 2.0 also creates an expanded catch-up window for individuals ages 60-63, allowing even higher contribution limits during those peak earning years.
5. Reviewing RMDs and Retirement Income
If you’re nearing or in retirement, be sure to confirm that your Required Minimum Distributions (RMDs) are complete for the year.
What This Means for You
The final months of the year are an ideal time to:
- Revisit your retirement plan design to ensure it aligns with SECURE Act 2.0 provisions.
- Maximize available catch-up and Roth opportunities before contribution deadlines.
- Coordinate your business tax strategy with your retirement planning to capture full credits and deductions.
A Trusted Wealth Management Partnership
To help clients make the most of these opportunities, YHB partners with Choreo Advisors a team of dedicated financial professionals specializing in retirement plan design and wealth management strategies.
If you or your business would like to:
- Review your current retirement plan,
- Explore a 401(k), SEP, or SIMPLE IRA option, or
- Develop a customized retirement savings strategy for 2026,
Then we encourage you to connect with Choreo through your YHB advisor. Together, we can ensure you’re well-positioned for the new retirement landscape.
