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.

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Relevant topic timeline:

8/25/2023

IRS offers extra time for Roth catch-up contributions

The Internal Revenue Service has extended the deadline for compliance with the new requirement for Roth catch-up contributions until 2026, allowing higher-income participants in retirement plans to designate their catch-up contributions as after-tax Roth contributions.

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.

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.