With January 1st coming down the pike, many in the retirement plan industry have issued a sigh of relief.
The Internal Revenue Service (IRS) has now announced an administrative transition period for the new catch-up contribution requirements under the SECURE 2.0 Act. The new rule requires older, higher paid 401(k) participants to make their catch-up contributions into after-tax Roth accounts, instead of pre-tax traditional accounts. Congress meant for it to take effect in 2024. Now, responding to begging from plan sponsors and payroll providers, the IRS has postponed that until 2026.
