401(k) tax changes in 2026 create new opportunities for scammers

October 29, 2025 News Fetcher

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If you’re over 50 and maxing out your 401(k), there’s a big change coming in 2026 that could affect the amount of tax you pay on “catch-up contributions.” Although it’s mostly about taxes and retirement planning, there’s an unexpected side effect: scammers are roaming around. Every time your financial habits or personal data becomes public, it’s an opportunity for scammers to try to take advantage of you. Here’s what’s changing, why it’s important, and how to protect yourself before scammers come.

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What changes with 401(k) catch-up contributions?

Remove your data to protect your retirement from scammers

Currently, if you’re over 50, you can make additional contributions to your 401(k) in addition to the standard annual limit ($23,500 in 2025). These “catch-up” contributions are typically tax-deferred, meaning the money comes out of your paycheck before tax and grows tax-free until retirement.

But starting in 2026, for anyone who earned more than $145,000 in the previous year, those tax contributions will no longer be deferred. Instead, they’ll become like a Roth 401(k), meaning you pay taxes on the money now, but it becomes tax-free and can be withdrawn tax-free in retirement.

This may seem simple, but it creates a double effect:

Higher earners will see less take home pay now.
Tax planning becomes more difficult, and some people may consider restructuring their accounts or investment strategies.
More importantly for CyberGuy readers: these changes create new opportunities for scammers.

Big changes to the 401(k) in 2026 could leave retirees exposed to new fraud risks. (Cyberguy.com)

Why new rules could attract scammers

The FBI is warning seniors about a billion-dollar scam draining retirement funds, and an expert says it’s being driven by artificial intelligence

Scammers are constantly looking for financially active retirees. When rules like these change, scammers send emails, calls or letters pretending to be financial advisors, IRS agents or plan administrators. Their goal? To trick you into giving up account numbers, Social Security details, or direct deposit information.

Some common scam tactics to watch for:

Fake “Plan Update” emails claiming you need to check your 401(k) contributions due to a law change.
Roth conversion scam calls claim you can “avoid additional taxes” by converting your account through a third-party “advisor.”
Urgency and fear tactics, such as “Act now, or you will lose your retirement benefits!”

Even savvy retirees can be surprised, especially when the letter sounds official and refers to real changes in the tax code.

How to protect yourself from 401(k) scams and data theft

The national program helps seniors spot scams as losses mount

As new changes to 401(k) rules take effect, scammers are using this confusion to scam retirees and workers alike. Follow these steps to stay alert, protect your savings, and protect your personal data from theft or misuse.

1) Knowing the legal changes

Start by understanding Secure 2.0 and how catch-up contributions will be taxed. Trusted sources include your plan administrator, the IRS website, or a licensed tax advisor. Staying informed helps you spot fake claims before they cause any harm.

2) Use a personal data removal service

For retirees, this extra layer of protection keeps sensitive information out of the reach of scammers who take advantage of tax changes, Roth conversions, and retirement updates. Although you can manually opt out of data brokers tracking your information, this process takes time and effort. The personal data removal service automates the task by contacting more than 420 data brokers on your behalf. It also reissues removal requests if your data resurfaces and shows you a dashboard of confirmed removals.

While no service can guarantee complete removal of your data from the Internet, a data removal service is truly a smart choice. It’s not cheap, and neither is your privacy. These services do all the work for you by systematically monitoring and scraping your personal information from hundreds of websites. This gives me peace of mind and has proven to be the most effective way to clear your personal data from the Internet. By limiting the information available, you reduce the risk of fraudsters cross-referencing data from breaches to information they might find on the dark web, making it harder for them to target you.

Check out my top picks for data removal services and get a free check to see if your personal information really exists on the web by visiting Cyberguy.com

A scam written on a tablet surrounded by cash

Scammers are already targeting retirees with fake “account update” alerts. (Kurt “CyberGuy” Knutson)

How to secure your 401(K) plan from identity fraud

Get a free check to see if your personal information is already on the web: Cyberguy.com

3) Check every call and email, in addition to using anti-virus software

If you get a call or email about your 401(k), don’t assume it’s real. Suspend or delete it, then contact your plan administrator directly using the official contact details. Avoid clicking on links or downloading attachments from unknown messages.

The best way to protect yourself from malicious links that install malware, and potentially access your private information, is to install strong antivirus software on all your devices. This protection can also alert you to phishing emails and ransomware, keeping your personal information and digital assets safe.

Get my picks for the best antivirus protection winners of 2025 for Windows, Mac, Android, and iOS at Cyberguy.com

4) Monitor your credit and accounts

Cybercriminals often use personal information from previous data leaks or from data brokers. Monitor your credit reports and account activity closely. Early detection can stop suspicious transactions before they escalate.

How scammers are exploiting your data in ‘pre-approved’ retirement scams

5) Set up alerts and freezes if necessary

Ask your bank and retirement plan to enable transaction alerts. You can also temporarily freeze your balance to prevent anyone from opening new accounts in your name. This is especially useful in times of financial change.

6) Educate friends and family

Scammers often target retirees and their relatives who help manage finances. Remind your loved ones to never share account details over phone or email. Protecting everyone in your household prevents scammers from finding weak links.

Stay safe by confirming any 401(k) changes directly with your plan provider. (Ochar/Getty Images)

Key takeaways for Kurt

Heading into 2026, new 401(k) rule changes will reshape how millions of Americans manage their retirement savings. Staying informed, careful, and proactive can protect your financial future. Scammers thrive on confusion, but by verifying information, monitoring your accounts, and removing your personal data from risky sites, you can stay one step ahead. Remember, the more control you have over your privacy, the harder it will be for criminals to exploit it.

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Have you taken steps to find out where your personal data is being disclosed, and what did you find most surprising when you checked? Let us know by writing to us at Cyberguy.com