Executive Summary
The IRS has rolled out two important updates that may affect how you receive tax refunds and how retirement plan contributions are handled. Here’s what you need to know as we head into 2026.
IRS to Phase Out Paper Refund Checks
Starting with individual taxpayers, the IRS plans to phase out paper refund checks in favor of direct deposit. The shift is designed to speed up payments, reduce fraud, and cut costs. Taxpayers who haven’t yet set up direct deposit may want to add banking information to their tax filings to avoid delays in receiving refunds.
Final Rules on Roth Catch-Up Contributions
The IRS and Treasury have also finalized regulations tied to the SECURE 2.0 Act. Beginning in 2026, high-earning employees age 50 and older who make catch-up contributions to 401(k), 403(b), or 457(b) plans will need to make those contributions on a Roth (after-tax) basis. This rule applies to participants with FICA wages above a certain threshold, while others can continue to choose pretax or Roth.
Next Steps
Our team can help you evaluate your withholding, banking information, and retirement contribution strategy in light of these updates.
Schedule a consultation today to discuss how these IRS changes may affect you.