High Earners 50 and Up Get Two-Year Reprieve From IRS on 401(k) Rule

High earners aged 50 and above are granted a two-year extension by the IRS on the rule that limited their 401(k) contributions.

wsj.com

Relevant topic timeline:

8/25/2023

IRS announces administrative transition period for new Roth catch up requirement; catch-up contributions still permitted after 2023

The Internal Revenue Service (IRS) has announced an administrative transition period until 2026 that requires higher-income participants in retirement plans to designate catch-up contributions as after-tax Roth contributions, and clarified that plan participants aged 50 and over can continue to make catch-up contributions regardless of income.

8/25/2023

IRS Will Delay 401(k) Roth Catch-Up Provision Under SECURE 2.0

The IRS will grant a two-year transition period for retirement plans to comply with a new policy on high-income catch-up contributions, providing relief to the industry.