IRS delays Catch-Up Contribution change

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.

Story Page
%d bloggers like this: