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☕ DrinkCoffeeAndProfit
Smart money moves before breakfast
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Inspiration Quote for the Day
“The best time to plant a tree was twenty years ago. The second best time is now.”
— Chinese proverb
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· · · Partner Message · · ·
Dear Fellow Investor,
Have you seen this video yet?
I’ve kept this presentation simple...
So ANYONE could understand exactly what to do to take advantage of this major investment opportunity.
“The Buck Stops Here,”
Dylan Jovine, CEO & Founder
Behind the Markets
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In One Sip
► For 2026, the standard 401(k) employee contribution limit is `$24,500`. Workers 50 and older can add a standard catch-up of `$8,000` (IRS).
► Workers who will be 60, 61, 62, or 63 by December 31 have access to an enhanced “super catch-up” of `$11,250`. That is `$3,250` more than the standard catch-up (SECURE 2.0 Act).
► Total personal 401(k) contribution room for eligible workers in this age band: `$35,750` in 2026, before any employer match.
► At age 64, the enhanced window closes. The worker returns to the standard `$8,000` catch-up.
► The buried lead: this feature is optional for employers. Many plans have not adopted it, and most eligible workers have never heard about it.
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The Morning Ritual
Frank Turned 60. Nobody Told Him the Ceiling Just Moved.
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My friend Frank turned 60 in April. He has been putting the same amount into his 401(k) every month for years. Same figure he set up when he got promoted at 47. He did not change it when his kids finished college. Did not change it when the mortgage got paid off. He just left it running.
Last weekend at a barbecue, someone mentioned they had bumped their contribution because “the ceiling went up for older workers.” Frank got curious. He pulled up his plan’s website Sunday night. That is when he saw it. For people in his age band, the extra room above the standard limit is not `$8,000` anymore. It is `$11,250`.
His HR had never sent him an email. His plan happened to support it. He had been leaving thousands of dollars of tax-advantaged contribution room on the table without knowing.
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Why It Matters for Your Money
Here is what the numbers look like on paper. The standard 401(k) limit in 2026 is `$24,500`. Workers 50 and older can add `$8,000` in catch-up. For most 401(k) participants over 50, that is the ceiling: `$32,500`.
But under a rule that took effect January 2025, workers who will be 60, 61, 62, or 63 by December 31 get access to an enhanced catch-up. Not `$8,000`. `$11,250`. That brings the personal contribution ceiling to `$35,750` before any employer match. An extra `$3,250` above what a 59-year-old can shelter. Same job. Same paycheck. Different birthday.
There is a second wrinkle worth flagging. Starting in 2026, if you earned roughly `$150,000` or more in wages from your employer last year, your catch-up contributions may be required to be made on a Roth basis, depending on how your plan implements the rule. That means no upfront deduction on those dollars. But no tax on the growth either.
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The Wealth Angle
Here is the pattern most people miss. Retirement rules keep getting more generous for workers in their early 60s specifically. The standard limit did not just move. Congress carved out a four-year window, ages 60 through 63, where the ceiling gets meaningfully higher. Then at 64, it drops back to the standard catch-up.
This is not accidental. Late-career workers tend to have the highest income of their working lives and the fewest expenses. Kids are out. Mortgage is smaller or gone. The idea is to let them shovel more into tax-advantaged accounts in the final stretch before retirement.
The real edge is not the extra `$3,250` in one year. It is the four years stacked together. Then let that compound for a decade before withdrawals start.
That is real money most eligible workers never claim.
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☕ Key Insight:
Retirement rules change more often than most people think. The single biggest edge is not picking the right fund. It is noticing when the rules change in your favor, and acting before December 31.
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Coffee Break Move
If you or your spouse will be 60, 61, 62, or 63 by December 31: call your plan administrator today. Ask two questions. First: does this plan support the enhanced catch-up for ages 60 through 63? Second: how do I change my payroll deduction for the rest of the year?
If the answer to the first question is yes, you have about five months of paychecks to work with. That is enough time to move real money.
If you are under 60: bookmark this. Set a reminder for the year you turn 60. And if you are the family financial brain, mention it to your parents and older siblings. Most of them will have no idea this exists.
Frank called his sister on Monday morning. She is 61. She called him back an hour later. “I just talked to HR.” That is how it starts.
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The extra room is not free money. It is your money. But the rule that says how much of it you can shelter changed in your favor. Take advantage of the window while it is open.
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This edition is for informational purposes only. It is not tax, legal, or investment advice. Contribution limits, age eligibility, employer plan adoption, and Roth catch-up requirements vary by plan and by individual circumstance. Please consult your plan administrator, HR, or a qualified tax or financial professional before adjusting your retirement contributions.
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