Published by Moneywise.com
Written by Chris Clark
“Higher earners, heed this warning: If you’ve been persistently socking away money for retirement through a traditional 401(k) plan, a big change is coming.”
“Among dozens of changes aimed at enhancing retirement savings options for workers, the SECURE 2.0 Act approved by Congress in late 2022 disrupts the “catch-up” contributions used by older, higher earners. Starting in 2026, those catch-ups will have to be designated as after-tax Roth contributions instead of regular 401(k) ones.
“The switch is more than a mere name change, as traditional 401(k) and Roth IRA accounts are very different retirement vehicles with distinctly different tax advantages and considerations.
“Employer-sponsored 401(k) accounts have become a default retirement vehicle for millions of American workers. Nearly 70 % of Americans working in the private sector had access to employer-sponsord retirement plans as of March 2022, according to the Bureau of Labor Statistics. However, only 52% of private-sector workers take advantage of them.
“The set-it-and-forget-it approach of 401(k)s provides employees with a sure and steady wealth-builder. The focus on pre-tax contributions also lowers the contributor’s taxable income, though that tax bill is kicked down the road to retirement when withdrawals from 401(k)s become taxable events.
“Roths are different. While contributions to these accounts are taken straight from one’s bottom line net pay, the Roth advantages arrive at age 59.5 — when contributors can start withdrawing their Roth funds tax-free.”
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.