You may hear talk about new Internal Revenue Service (IRS) rules on contributing to 401(k) accounts that go into effect next year, but odds are the new rules will not affect you.
There are several reasons why you're likely excluded: first the new provision of the SECURE Act 2.0 is exclusively for individuals who make more than about 150,000 per year just from one company. The rule is not for people with two jobs.
Second, the rule is measured by income per person, not by household income, and those affected are age 50 or older, according to IRS rules
And third, it's intended for people who want to make "catch-up" contributions, says Bankrate financial analyst Stephen Kates.
"What it means is people with high income are going to be more restricted in the type of contributions they can make with their catch-up contributions."
With all the restrictions on the restrictions added this year by the IRS, only a tiny percentage of taxpayers will be affected by the change.
"There really are not going to be a lot of people impacted overall. And in fact, the biggest boon for this is going to be their financial advisors, who then have to help these people navigate all these rules."
So to be specific:
"People who are contributing more than $24,500 into their 401(k) starting next year, they are going to be affected,and only if they have an income of roughly 5percent to 10-percent," Kates added