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 Oct. 5, 2026

Add Us On Google

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, it's especially important to know about new policy changes affecting them.

Here are examples of recent 401(k) policy changes, along with several proposed changes by the Trump Administration that may affect retirement plans in the future.

Set up eligible direct deposit - pocket up to $400

Set up an eligible direct deposit with SoFi Checking and Savings and you could earn a bonus of $50 or $400.¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. Make the switch, set up eligible direct deposit, earn the bonus. It basically takes no extra work at all other than following these steps.

Why people are switching: This account earns up to an insane 4.20% APY² Earn up to 4.20% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.30% APY as of 9/23/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC. on savings for up to six months (3.30% APY standard + 0.90% APY boost) on top of that $50 or $400 bonus.¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. That's way better than the measly 0.38% APY (as of 06/15/26)³ Based on <a href="https://www.fdic.gov/national-rates-and-rate-caps">this</a> FDIC data, as of 6/15/26. national average savings accounts offer.

No monthly fees and no surprises. Open your account and earn up to a $400 bonus

Workers over 50 can make larger catch-up contributions

The most beneficial 401(k) change for those 50 and older is the ability to make larger catch-up contributions. Workers ages 50 and older 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.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

Workers earning over $150,000 face the biggest changes

Even though workers can make larger catch-up contributions, important changes apply to those earning over $150,000 a year. Under a provision of the SECURE 2.0 Act of 2022, certain higher-income workers who make catch-up contributions must make those contributions as Roth contributions beginning in 2026.

This requirement is part of the retirement legislation enacted in 2022, rather than a new provision created by the Trump Administration.

Many higher-income workers in their 50s may not like this change.

The reason is that many high earners relied on catch-up contributions to reduce their taxable income. Now they can't do that, since 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

In August 2025, President Donald Trump signed an executive order directing the Department of Labor to reconsider its guidance on alternative investments in 401(k) and other defined-contribution retirement plans. The order also directed the Securities and Exchange Commission and other agencies to consider related regulatory changes.

The Department of Labor subsequently proposed a rule addressing how 401(k) plan fiduciaries could evaluate alternative investments, including assets such as private equity and digital assets. The proposal was published on March 31, 2026, and the public comment period closed on June 1, 2026.

As of Oct. 1, 2026, the proposal has not become a final rule, so view it as a proposed change rather than a current requirement or guarantee that these investments will be available in 401(k) plans.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up to 25% off your AARP membership, making it just $15 the first year with auto-renewal.

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, those assets' volatility may cause 401(k) balances to fluctuate more for investors. 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, 401(k)s remain tax-advantaged accounts that many employers use across 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 toward retirement. As of 2026, workers can contribute $24,500 to their 401(k)s.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

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 affect your taxes in your 50s, especially if you're a high earner, so consulting a financial planner or accountant can help you prepare.

More from FinanceBuzz: