💰New Regulations on Catch-Up Contributions and Roth Designations
Catch-Up Contributions
Summary
This document sets forth final regulations that provide guidance for retirement plans that permit participants who have attained age 50 to make additional elective deferrals that are catch-up contributions. The regulations reflect statutory changes made by the SECURE 2.0 Act of 2022, including the requirement that catch-up contributions made by certain catch-up eligible participants must be designated Roth contributions. The regulations affect participants in, beneficiaries of, employers maintaining, and administrators of certain retirement plans.
Agencies
- Treasury Department
- Internal Revenue Service
Business Impact
$$$ - High
The content involves new regulatory requirements and compliance for retirement plans concerning catch-up contributions, specifically designating them as Roth contributions. This affects employers maintaining retirement plans and requires them to update their practices and compliance measures according to the SECURE 2.0 Act.