Check out what's clicking on FoxBusiness.com.

Wake up, high-income earning Americans: a tax shift the size of a wrecking ball is barreling toward your retirement account. Starting in 2026, people age 50 and over who make more than $145,000 in wages (from a single employer) will no longer be allowed to make pretax "catch-up" contributions to their 401(k). Instead, those extra dollars — intended to turbocharge retirement savings in your higher-earning years — must go into Roth accounts, meaning you pay taxes now rather than later.

This is a big deal. For decades, catch-up contributions have been a cherished loophole for folks nearing retirement to shift extra savings into tax-deferred accounts, lowering their current tax bill. Who says that Congress makes tax breaks only for wealthy people? Congress has now removed that pretax catch-up option for higher earners — and in doing so, is effectively yanking away a deduction worth roughly $2,775 to almost $4,000, depending on the state you live in.

Here’s how it works now — and how it will change:

PROGRESSIVE CITIES GAMBLE WITH UNIVERSAL INCOME WHILE INFLATION THREAT LOOMS

If you’re 50 or older, you’ve been allowed to sock away extra money in your........

© Fox Business