IRS Issues Transition Period for Requiring Roth Catch-Up Contributions

McNees Wallace & Nurick LLC
Contact

McNees Wallace & Nurick LLC

Individuals who are 50 years old or older may make additional contributions to 401(k) plans, referred to as catch-up contributions.  Secure 2.0 included a requirement that starting January 1, 2024, only participants who earn $145,000 or less (as adjusted) in the previous year may make pre-tax contributions. Individuals who earned more than $145,000 in the previous year may only make Roth catch-up contributions.

On August 25, 2023, the Internal Revenue Service announced a 2-year transition period whereby plans will not be required to comply with the requirement that individuals earning more than $145,000 may only make Roth catch-up contributions.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© McNees Wallace & Nurick LLC

Written by:

McNees Wallace & Nurick LLC
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

McNees Wallace & Nurick LLC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide