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.

irs.gov

Relevant topic timeline:

8/25/2023

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.

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.

8/28/2023

IRS delays change for 401(k) catch-up contributions. Here's what higher earners need to know

The IRS has announced a two-year delay on a change that would have eliminated the upfront tax break on catch-up contributions for higher earners, allowing them to continue making pretax catch-up contributions to retirement plans through 2025.

8/29/2023

IRS Pushes Back New Roth 401(k) Catch-Up Rules. What to Know.

The IRS has postponed the implementation of a new rule that would require higher earners to make catch-up 401(k) contributions on an after-tax basis into a Roth account, rather than pretax.

9/12/2023

SECURE 2.0 Act Reduces 401(k) Tax Savings for Higher Earners Over 50

Millions of higher-earning Americans will be affected by the SECURE 2.0 Act, which changes the "catch-up" contributions in traditional 401(k) plans to after-tax Roth contributions starting in 2026, altering the tax advantages for older workers who make catch-up contributions.

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Posted 8/25/2023, 8:06:29 PM

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

irs.gov

Relevant topic timeline:

8/25/2023

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.

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.

8/28/2023

IRS delays change for 401(k) catch-up contributions. Here's what higher earners need to know

8/29/2023

IRS Pushes Back New Roth 401(k) Catch-Up Rules. What to Know.

The IRS has postponed the implementation of a new rule that would require higher earners to make catch-up 401(k) contributions on an after-tax basis into a Roth account, rather than pretax.

9/12/2023

SECURE 2.0 Act Reduces 401(k) Tax Savings for Higher Earners Over 50