The “Catch-Up” Roth Mandate: New Rules for High-Earning LLC Owners

It is May 2, 2026. If your LLC is generating high income, the rules for your retirement contributions have just changed under the SECURE Act 2.0 implementation.

  • Roth Mandate: If you earned more than $150,000 in the previous year, your “catch-up” contributions must now be designated as Roth (after-tax) contributions.
  • Age Bonus: For owners aged 60 to 63, the additional contribution limit has increased from $8,000 to $11,250.
  • The Shark Insight: “The IRS wants its taxes today, not tomorrow. By forcing the Roth transition, you lose the immediate deduction but gain a lifetime of tax-free growth. It’s a chess move: pay a little now to pay nothing when you’re a millionaire in retirement.”

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