Build a Better Agency Podcast Episode 526 Navigating 401k Changes for Agencies with Craig Cody
Nov 2, 2025
In this insightful discussion, Craig Cody, a seasoned CPA and tax advisor, sheds light on crucial 401(k) regulation changes impacting agency owners and high earners. He delves into the new catch-up contributions tied to income, the necessity of Roth provisions in existing plans, and compliance risks for agencies. Craig also highlights available tax credits for newly launched 401(k) plans, the benefits of switching to a 401(k), and common tax strategies that many overlook. His practical advice offers agency leaders a roadmap to navigate these complex changes.
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Add Roth Catch-Up Provision Now
- Check your 401(k) plan now to ensure it allows Roth catch-up contributions for anyone whose 2025 W-2 Medicare wages exceed $145,000.
- Ask your plan administrator to add the Roth provision before the end of 2025 so 2026 catch-ups are compliant and avoid taxable 1099s in 2027.
Designate Catch-Up Allocation Upfront
- Contact your 401(k) administrator and designate how catch-up amounts will be allocated inside the plan so contributions route correctly.
- Consider contributing the $7,500 Roth first each year to avoid mistakenly directing it to a pre-tax account when you hit the income threshold.
Prepare For Auto-Enrollment Rules
- If your plan started after 12/29/2022 and you have 10+ employees, implement automatic enrollment and escalate contribution percentages annually as required.
- Build enrollment paperwork into onboarding so employees make an active choice (including zero) before the auto-enrollment date.