The IRS just finalized rules tied to SECURE 2.0, and while they sound “retirement-focused,” they matter more to construction business owners than you might think.

Here’s what to know:

• 🔹 High earners & 401(k) catch-upsIf you earned over $145,000 in the prior year, any catch-up 401(k) contributions will now have to be Roth.
• This hits owners, PMs, and senior superintendents hardest—especially those counting on last-minute pre-tax deductions.
• 🔹 Multiple companies = combined wagesIf you worked for or owned multiple entities, the IRS can now aggregate wages across employers when deciding whether the Roth rule applies.
• Common in construction groups, joint ventures, and family-run companies.
• 🔹 Paper refund checks are going awayStarting Sept. 30, 2025, the IRS plans to stop issuing most paper refund checks.
• If your 2025 return doesn’t include direct deposit info, refunds could be delayed 6+ weeks.

Effects for Contractors:

• Cash flow timing matters• Retirement planning affects tax strategy• Delays = frustration + lost leverage

2026 planning should start now, not next spring—especially if you’re a high earner or operate through multiple entities. Book a time to speak: https://accountingsolutionsllp.com/appointment/

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.