9 Reasons Sherwin-Williams Employees Should Make 401(k) Catch-Up Contributions

Healthcare Provider Update: Healthcare Provider for Sherwin-Williams Sherwin-Williams provides its employees with access to comprehensive healthcare benefits through employer-sponsored health plans, which include medical, dental, and vision coverage. These plans are designed to meet the diverse needs of their workforce and are typically updated annually during the open enrollment period each October and November. Potential Healthcare Cost Increases for Sherwin-Williams in 2026 As healthcare costs continue to rise, Sherwin-Williams may face significant increases in insurances premiums for 2026. Due to anticipated record hikes in Affordable Care Act (ACA) marketplace plans, some employees could see their healthcare expenses surge by over 75% if enhanced federal premium subsidies are not extended. This situation is compounded by rising medical costs, with overall healthcare costs expected to increase by approximately 8.5% for employers, meaning that Sherwin-Williams will likely need to navigate these challenges while managing employee healthcare benefits responsibly. As a proactive measure, employees might consider optimizing their healthcare choices in 2025 to mitigate potential financial impacts in the coming year. Click here to learn more

For Sherwin-Williams employees approaching Retirement, catch-up contributions can help accelerate savings and reduce taxable income and are an important component of any financial plan, says Wesley Boudreaux, of The Retirement Group, a division of Wealth Enhancement Group.

'Sherwin-Williams employees should consider making catch-up contributions to increase their Retirement security - especially with the increasing age of retirees - and if done right it could provide immediate tax benefits and long-term financial stability,' says Patrick Ray, of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

1. The benefits and mechanics of catch-up contributions to retirement savings.

2. Key legislative changes regarding catch-up contributions under SECURE Act 2.0.

3. The psychological benefits of putting away money for retirement later in life.

For many Sherwin-Williams employees nearing retirement age or who have already started their journey toward retirement, catch-up payments are a necessary evil to increase retirement funds. This type of financial mechanism is useful for people who want to build up their retirement accounts because people over 50 can contribute more to employer-sponsored retirement plans like 403(b)s and 401(k)s.

Simple idea:

Make catch-up contributions. For 2024, the 401(k) contribution cap is $23,000. But the catch-up contribution option allows another $7,500, making the year's allowable contribution $30,500. Quite remarkable given that this is more than 25% of yearly income for those earning about $100,000, and the percentage rises for those with lower incomes.

The report 'How America Saves 2023' from Vanguard noted that virtually all employer-sponsored retirement plans allow participants to make catch-up contributions. Though widely available, only sixteen percent of participants used it in 2022 - a percentage that hasn't changed much since 2016. Notice that for those earning over $150,000 the utilization rate is 58%, which shows that income levels are related to catch-up contributions.

Catch-up payments are important for Sherwin-Williams employees beyond 401(k) programs. This is in addition to Individual Retirement Accounts (IRAs), which let contributors 50 and older add $1,000 over the regular limit - $7,000 for 2024. That's a calculated chance for Sherwin-Williams employees to grow their retirement savings - and it may mean restructuring their financial plan - rewriting budgets or delaying discretionary spending.

Catch-up contributions have many advantages. In addition to lowering taxable income, these contributions can be made before tax for immediate tax relief. This is good because the deferred taxes on these contributions will only apply when the money is withdrawn - which may be in a lower tax bracket in retirement. Moreover, compounding over fifty to sixty-five years can fill an individual's retirement account with a solid financial foundation for a twenty to 25-year retirement.

Like regular 401(k) deferrals, catch-up contributions are rolled into retirement savings programs as automatic paycheck deductions. They also allow allocations to Roth 401(k) plans, where retirement withdrawals are tax free. This flexibility is critical for Sherwin-Williams employees trying to top off their retirement resources or planning late retirement.

By the end of 2022, SECURE Act 2.0 changed catch-up contributions dramatically. For those earning over $145,000 a year, those extra after-tax payments will have to be made to a Roth account by 2026 for anyone making more than that. Originally this was to take place in 2024, but was postponed following an IRS notification in 2023. And from 2024 onward, catch-up restrictions on IRAs will be adjusted for inflation, perhaps rising 1% annually. Besides, from 2025 a special catch-up limit will apply to people 60 to 63 years old. That limit will be $10,000 or 150% of the regular catch-up limit.

To summarize, catch-up contributions are an essential strategy for Sherwin-Williams employees nearing or retiring to build up retirement savings. People are living longer so you need a solid financial foundation for your retirement years. Catch-up contributions help you accelerate your retirement savings while also providing tax benefits and increased security.

Research highlights psychological benefits of catch-up contributions to retirement savings aside from the obvious ones - for those who save later in life. People who are catching up on contributions had less anxiety about retirement and more financial confidence, according to a study in the Journal of Financial Planning (2021). This is important psychologically because it influences perceptions of financial security and may stimulate active savings. Such mental health is critical for people approaching retirement - and the benefits of catch-up payments go beyond quick cash rewards.

Start saving for retirement like you would in the spring. Like a gardener who uses catch-up techniques to ensure a crop when the best planting season has passed, older employees can use catch-up contributions to build a more lucrative retirement. Every dollar more you invest in your 401(k) or IRA is like planting late-season, fast-growing crops that can still produce fruit and take advantage of the remaining sunlight (working years). Like a well-tended garden that pays off early on, your financial garden will also produce plenty with tools like tax advantages, compounding interest, and provisions like those in SECURE Act 2.0.

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Sources: 

1. Internal Revenue Service.  'Retirement Topics - Catch-Up Contributions.'  IRS , 26 Feb. 2025,  www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions .

2. Fidelity Investments.  'How to Save Extra for Retirement with Catch-Up Contributions.'  Fidelity , Dec. 2024,  www.fidelity.com/viewpoints/retirement/catch-up-contributions .

3. Vanguard Group.  'How America Saves 2023.'  Vanguard , 2023,  www.vanguard.com/how-america-saves-2023 .

4. Voya Financial.  'New SECURE 2.0 'Super Catch-Up' Contribution for Ages 60-63.'  Voya , Dec. 2024,  www.voya.com/blog/new-secure-20-super-catch-contribution-ages-60-63 .

5. Investopedia.  'Catch-Up Contribution: What It Is, How It Works, Rules, and Limits.'  Investopedia , Sept. 2024,  www.investopedia.com/terms/c/catchupcontribution.asp .