HomeBusinessRoth Catch-Up Rule Delayed — Oblivious Investor Get hold of US

Roth Catch-Up Rule Delayed — Oblivious Investor Get hold of US

One of many many adjustments made by the SECURE Act 2.0 was that, beginning in 2024, catch-up contributions to 401(okay), 403(b), and governmental 457(b) plans must be Roth (slightly than tax-deferred) for any worker whose wages from the employer in query within the prior 12 months have been greater than $145,000.

Many employers and plan directors complained, arguing that they wouldn’t have the ability to implement the required techniques in time. (Beforehand, catch-up contributions to such plans weren’t even allowed to be Roth, so there’s a bunch of software-related work to be performed.)

The IRS just lately agreed that extra time was wanted and introduced that the brand new requirement received’t go into impact till 2026:

IRS Announces Administrative Transition Period for New Roth Catch Up Requirement from the IRS

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