Inside The Plan With The 401(k) Brothers

As the calendar turns to 2026, Bill and Andy Bush kick off the new year by breaking down key changes affecting higher-income 401(k) participants—most notably the new SECURE 2.0 rules requiring Roth catch-up contributions for certain earners. They unpack who the rules apply to, how they intersect with other income thresholds, and why many six-figure earners still feel behind despite strong incomes. Along the way, the brothers share practical New Year's resolutions that actually move the needle: optimizing (not just maxing) your 401(k), improving tax efficiency, managing emotions, reducing complexity, and defining what "enough" really means so your money supports both your future and your life today.   ⏱ Episode Timeline & Key Topics 00:08 – Welcome & Happy New Year Bill and Andy kick off the first episode of 2026, reflecting on the new year and why this episode revisits financial "reset" themes—especially for higher-income participants. 00:45 – Why This Episode Matters Right Now The brothers recap last year's New Year–focused episode and explain why 2026 brings new wrinkles in the 401(k) world that deserve attention. 01:15 – SECURE 2.0 Roth Catch-Up Rule Explained Introduction of the new rule requiring Roth catch-up contributions for certain high earners: Age 50+ Prior-year wages of $150,000+ Catch-up contributions must be Roth (after-tax) 02:30 – Who Is (and Isn't) Subject to the Rule Clarification on: W-2 wages (Box 3) Why K-1 partners without W-2 income are exempt Catch-ups are still allowed—just not required to be Roth for exempt participants 03:45 – Implementation Challenges & Plan Decisions Discussion on delayed rollout, transition relief, and why some plans chose to eliminate catch-ups rather than add Roth complexity. 04:10 – Super Catch-Up Contributions (Ages 60–63) Overview of the enhanced "super catch-up": $11,250 limit for ages 60–63 What happens when you turn 64 Why planning matters during this short window 04:55 – Three Different "High Income" Definitions Breaking down commonly confused thresholds: $150,000 (Roth catch-up rule) $160,000 (Highly Compensated Employee testing) $184,500 (Social Security wage base for 2026) 05:45 – Six-Figure Earners Living Paycheck to Paycheck Why many high earners still feel financially stretched—and how lifestyle expansion plays a major role. 06:45 – Spending vs. Saving: The Real Challenge Why high earners often save well—but still struggle: Lifestyle creep Complex financial lives Income replacement challenges in retirement 08:15 – Roth Trade-Offs for High Earners Pros and cons of being "forced" into Roth catch-ups: Paying taxes now vs. later Short vs. long runways Impact on retirement income planning 09:50 – Retirement Tax Planning & IRMAA Considerations How different account types affect: Medicare IRMAA surcharges Taxable income in retirement Withdrawal flexibility 10:40 – Why HSAs Deserve Special Attention HSAs as one of the most tax-efficient retirement tools—especially for those uncomfortable with Roth catch-ups. 11:30 – Roth vs. Taxable Brokerage Accounts Why Roth accounts offer long-term advantages over taxable investing for money you don't need immediately. 12:30 – Using Roth Assets Strategically Real-world examples: Large one-time expenses in retirement Legacy planning for heirs Flexibility when income spikes matter 🎯 Financial New Year's Resolutions for High Earners 13:30 – Optimize Your 401(k), Don't Just Max It Why alignment matters more than simply hitting contribution limits. 14:30 – "Above the Corn Stalks" Perspective Bill's analogy for stepping back, gaining clarity, and checking direction—not just reacting to day-to-day financial noise. 15:10 – Small Adjustments, Big Impact Using plan tools, reviewing statements, and making incremental changes that compound over time. 15:55 – 1% Improvements vs. Working Longer Why small efficiency gains may—or may not—outperform delaying retirement, depending on your goals. 16:40 – Keep Emotions Out of Investing Why larger account balances amplify emotional reactions—and how long-term discipline matters more than headlines. 17:55 – Time Horizon Is the Anchor Planning for potentially decades-long retirements and staying focused on the "North Star." 18:25 – Reduce Financial Complexity Why consolidating old accounts: Simplifies decision-making Reduces fees Brings peace of mind 19:50 – Defining "Enough" A candid discussion on shifting goalposts, relationships, and balancing financial ambition with life satisfaction. ✅ January Checklist for Participants 21:00 – Review Beneficiaries Especially important after plan recordkeeper changes—designations may not transfer. 21:40 – Update Contribution Elections for 2026 Key limits: Deferral limit: $24,500 Catch-up (50+): $8,000 Super catch-up (60–63): $11,250 Roth catch-up rules for high earners 22:55 – Review Investment Allocation Confirm your risk level still matches your time horizon and comfort level. 23:30 – Be Intentional About Improvement Progress doesn't require perfection—just purposeful action. 24:00 – New Look, Same Mission Bill and Andy share updates on refreshed podcast artwork and reiterate their commitment to helping participants gain clarity and confidence. 24:30 – Final Thoughts & How to Reach the Brothers High income creates opportunity—but only when paired with intention, planning, and follow-through. 📌 Closing Disclaimer he views depicted in this material are for information purposes only and are not necessarily those of Satara Advisors LLC. They should not be considered specific advice or recommendations for any individual. Neither Satara Advisors LLC nor any of its representatives may give legal or tax advice. Pete Bush, Bill Bush, and Andy Bush are registered representatives offering securities and advisory services offered through Satara Advisors LLC. Member FINRA SIPC, a broker dealer and registered investment advisor. Cetera is under separate ownership from any other named entity. 15015 Jamestown Boulevard, Suite 100, Baton Rouge, Louisiana 70810.