Month: September 2025

The IRS and U.S. Department of the Treasury this week finalized rules for certain provisions from the Secure 2.0 Act of 2022, including catch-up contributions for 401(k) and other plans, which apply to workers age 50 and older. Starting in 2027, catch-up contributions generally must be after tax (also called Roth), rather than pretax, for workers who made more than $145,000 from their current employer during the previous year. But some plans could make the change in 2026 “using a reasonable, good faith interpretation of statutory provisions,” the IRS said. This is significant change for high wage earners. Click below for the full story.

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The U.S. Department of the Treasury has released a preliminary list of jobs eligible for the “no tax on tips” deduction enacted via President Donald Trump’s “big beautiful bill.” Trump’s provision allows certain workers to deduct up to $25,000 of “qualified tips” yearly from 2025 through 2028. The deduction phases out, or gets smaller, once modified adjusted gross income exceeds $150,000. The tax break is available even if you don’t itemize deductions. The Treasury’s preliminary list outlined 68 occupations that “customarily and regularly received tips” on or before Dec. 31, 2024, which would qualify for the new deduction. Click for the list of tipped workers who may qualify for Trump’s “no tax on tips” deduction:

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Many investors don’t know about the 0% capital gains bracket, which allows you to “harvest gains,” or sell profitable assets, without triggering taxes. With new deductions added for 2025, more investors could qualify for the 0% bracket under President Donald Trump’s “big beautiful bill.″ That could offer a “golden opportunity” to sell investments at 0% capital gains. Click here for some key things investors need to know, according to financial experts.

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