401(k) Catch-Up Tax Changes in 2026 Create New Opportunities for Fraudsters

If you’re over age 50 and maxing out your 401(k), a big change is coming in 2026 that could affect the amount of tax you pay on your “catch-up contributions.” Although it’s primarily about taxes and retirement planning, there’s an unexpected side effect: scammers go around in circles. Any time your financial habits or personal information becomes public, scammers have an opportunity to try to exploit you. Here’s what’s changing, why it matters, and how to protect yourself before scammers come knocking.

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What changes with 401(k) catch-up contributions

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Currently, if you’re over age 50, you can make additional contributions to your 401(k) on top of the standard annual limit ($23,500 in 2025). These “catch-up” contributions are generally tax-deferred, meaning the money comes out of your salary before tax and grows tax-free until retirement.

But starting in 2026, for anyone earning more than $145,000 the previous year, these catch-up contributions will no longer be tax-deferred. Instead, they will become like the Roth 401(k), meaning you pay taxes on the money now, but it grows tax-free and can be withdrawn tax-free in retirement.

It sounds simple, but it creates a ripple effect:

• High earners will now see their take-home pay decrease.
• Tax planning becomes trickier and some people may consider restructuring their accounts or investment strategies.
• And especially for CyberGuy readers: these changes create new opportunities for scammers.

Why the new rules could attract fraudsters

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Scammers are constantly looking for financially active retirees. When such rules change, scammers send emails, calls or letters pretending to be financial advisors, IRS agents or plan administrators. Their goal? To trick you into disclosing your account numbers, Social Security information, or direct deposit information.

Some common scam tactics to watch out for:

• Fake “plan update” emails claiming you need to check your 401(k) contributions because of the law change.
• Roth conversion scam calls claiming you can “avoid additional taxes” by transferring your account through a third-party “advisor.”
• Urgency and fear tactics, such as “Act now, or lose your retirement benefits!” »

Even savvy retirees can be caught off guard, especially when the message appears official and refers to real changes in tax law.

How to protect yourself from 401(k) scams and data theft

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With new 401(k) rule changes taking effect, scammers are taking advantage of the confusion to deceive retirees and workers. Follow these steps to stay vigilant, safeguard your savings, and protect your personal data from theft or misuse.

1) Know the legitimate changes

Start by understanding Secure 2.0 and how catch-up contributions will be imposed. Reliable sources include your plan administrator, the IRS website, or a licensed tax advisor. Staying informed helps you spot false claims before they cause harm.

2) Use a personal data deletion service

For retirees, this added layer of protection keeps sensitive information out of reach of fraudsters who exploit tax changes, Roth conversions and retirement updates. Although you can manually opt out of data brokers and track your information, this process takes time and effort. A personal data deletion service automates the task by contacting over 420 data brokers on your behalf. It also reissues deletion requests if your data reappears and shows you a dashboard of confirmed deletions.

Although no service can guarantee the complete removal of your data from the Internet, a data deletion service is definitely a wise choice. They’re not cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically deleting your personal information across hundreds of websites. This is what gives me peace of mind and has proven to be the most effective way to erase your personal data from the Internet. By limiting the information available, you reduce the risk of fraudsters cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

Check out my top picks for data deletion services and get a free scan to find out if your personal information is already available on the web by visiting Cyberguy.com

Scammers are already targeting retirees with fake “account update” alerts. (Kurt “CyberGuy” Knutsson)

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3) Check every call and email and use antivirus software

If you receive a call or email about your 401(k), don’t assume it’s real. Hang up or delete it, then contact your plan administrator directly using the official contact details. Avoid clicking links or downloading attachments from unknown messages.

The best way to protect yourself from malicious links that install malware, potentially accessing your private information, is to install powerful antivirus software on all your devices. This protection can also alert you to phishing emails and ransomware scams, protecting your personal information and digital assets.

Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android, and iOS devices at Cyberguy.com

4) Monitor your credit and accounts

Cybercriminals often use personal information from previous data breaches or from data brokers. Closely monitor your credit reports and account activity. Early detection can stop suspicious transactions before they escalate.

HOW Scammers are exploiting your data for “pre-approved” retirement scams

5) Configure alerts and blocks if necessary

Ask your bank and retirement plan to enable transaction alerts. You can also temporarily freeze your credit to prevent anyone from opening new accounts in your name. This is particularly useful during times of financial change.

6) Educate your friends and family

Fraudsters often target retirees and their loved ones who help them manage their finances. Remind your loved ones to never share your account details over the phone or email. Protecting everyone in your household prevents fraudsters from finding the weak links.

Stay safe by confirming any 401(k) changes directly with your plan provider. (uchar/Getty Images)

Kurt’s Key Takeaways

As 2026 approaches, new changes to the 401(k) rule will reshape the way millions of Americans manage their retirement savings. Staying informed, prudent and proactive can protect your financial future. Scammers thrive on confusion, but by verifying information, monitoring your accounts, and removing your personal data from risky sites, you can stay ahead of the game. Remember, the more control you have over your privacy, the harder it becomes for criminals to exploit it.

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Have you taken steps to find out where your personal data is exposed, and what did you find most surprising when you checked? Let us know by writing to us at Cyberguy.com

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