Aspen’s Jim Davis Featured in Kiplinger Article

Jim Davis, CFP®, Senior Wealth Advisor at Aspen Wealth Management, was recently featured in a Kiplinger article offering insight on whether high earners should continue contributing the maximum amount to their 401(k) plans amid changing tax rules. The article explores how potential limitations on 401(k) tax breaks could affect savers and whether traditional strategies still make sense for those in higher income brackets. 

In the feature, Jim explains the incoming changes to traditional 401(k) catch-ups. “Starting in 2026, anyone earning over $145,000 who wants to make 401(k) catch-up contributions will need to put those extra dollars into a Roth account. That means paying taxes up front instead of getting the immediate deduction.” He urges higher earners to consider their entire retirement plan when making these decisions. “You also need to consider other moving parts in your plan. Higher income can affect required minimum distributions, Social Security, and Medicare premiums, especially IRMAA,” says Davis. “The key is to view catch-ups as one piece of your overall plan. How do they fit with your tax strategy, retirement income, and long-term cash flow?”