medium · Certified Financial Planner General Principles
The Nguyen household includes a 61-year-old worker who earned $175,000 in FICA wages in 2025. In 2026, he wishes to maximize his 401(k) contributions.
What is his maximum allowable elective deferral, including catch-up provisions, and what is the specific tax treatment of the catch-up portion?
- $35,750 total; catch-up can be pre-tax
- $32,500 total; catch-up must be Roth
- $35,750 total; catch-up must be Roth
- $32,500 total; catch-up can be pre-tax
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