Retirement Retirement Planning

401(k) Rules Are Changing Under Trump - And People in Their 50s May Not Like What's Happening

American workers who are retiring need to know about this.

By Catherine Collins , Edited by Laura Hohenstein

Updated June 24, 2026

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If you're in your 50s, especially if you're a high earner, you need to know about some recent changes to 401(k) retirement plans. Because your fifties are your last major opportunity to top up your retirement accounts, being aware of new policy changes affecting them is especially important.

Here are some examples of recent 401(k) policy changes, as well as several proposed changes by the Trump Administration that may impact retirement plans in the future.

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Workers over 50 can make larger catch-up contributions

The most beneficial 401(k) change for those 50 and older is that they can make larger catch-up contributions. Workers between the ages of 50 and 59 can contribute an extra $8,000 to their 401(k)s in addition to the $24,500 maximum. Workers ages 60 to 63 can contribute an extra $11,250, also known as a "super catch-up" contribution. These catch-up contributions give workers who may feel behind on their retirement savings the opportunity to contribute more to their 401(k)s before they retire.

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Workers earning over $150,000 face the biggest changes

Even though workers can make larger catch-up contributions, there are important policy changes for workers earning over $150,000 a year. Now, those workers who fall under that income bracket must make catch-up contributions as Roth contributions. This is a change that many higher-income workers in their 50s may not like.

The reason is that many high earners relied on catch-up contributions as another way to reduce their taxable income. Now, they won't be able to do that, as Roth contributions are made with after-tax income. The benefit of Roth accounts, though, is that people can withdraw the money tax-free in retirement, as long as they meet certain criteria.

Upcoming 401(k) policy changes may allow crypto in plans

At the end of 2025, the Trump Administration introduced the possibility of adding alternative investments, such as private equity and cryptocurrency, to 401(k) plans. He signed an executive order asking the SEC to investigate adding these to 401(k) plans.

Although there were several critics, including Senator Elizabeth Warren, the Department of Labor released a proposal to allow those investments in retirement plans in March 2026.

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Review your 401(k) investment options before making changes

Even if alternative assets like cryptocurrency become available in your 401(k) plan in the future, take the time to do thorough research before making changes to your asset allocation. This is especially important if you're in your 50s, which are your prime earning years.

How economic changes impact 401(k) balances

Because workers in their 50s are closer to retirement, it's wise to stay aware of broader economic changes and how they impact 401(k) balances. For example, earlier in President Trump's second term, market volatility was driven by tariff-related turbulence. Workers who retired during that time may have seen their 401(k) balances drop.

Additionally, if new asset classes like cryptocurrency become part of many 401(k) plans, the volatility of those assets may make 401(k) balances fluctuate more for those who invest in them. Ultimately, part of protecting your 401(k) balance is having a good withdrawal strategy in retirement that's based on market performance.

What's remained the same with 401(k)s

Even though there have been several 401(k) policy changes, what hasn't changed is that 401(k)s are still a tax-advantaged account that many employers use all over the United States. Employers can still offer matching contributions, and workers over 50 can still make catch-up contributions. The IRS also still periodically raises contribution limits, so workers have an opportunity to save even more towards retirement. As of 2026, workers can contribute $24,500 to their 401(k)s.

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Consult a financial advisor to update your retirement strategy

When 401(k) policies change, it can be stressful not knowing how they will impact your personal finances. If you have questions or are unsure whether you're still on track for retirement, consult a financial planner. A financial planner can help you update and optimize your retirement plan. This is especially important if you're in your 50s, as you only have a few years left to top up your retirement account and take advantage of catch-up contributions before you stop working.

Bottom line

If you want to have a stress-free retirement one day, it's important to stay up to date on policy changes that may affect the way you contribute to your retirement accounts. This is especially important if you're in your 50s and want to retire soon. Some of the Trump Administration's changes may impact your taxes in your 50s, especially if you're a high earner, so consulting with a financial planner or an accountant can help you prepare.

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