📈IRS Proposed Regulations on Roth Catch-Up Contributions for 2025
Catch-Up Contributions
Summary
This document sets forth proposed regulations that would provide guidance for retirement plans that permit participants who have attained age 50 to make additional elective deferrals that are catch-up contributions. The proposed 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 proposed regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of certain retirement plans. This document also provides notice of a public hearing.
Agencies
- Treasury Department
- Internal Revenue Service
Business Impact
$$ - Med
The proposed regulations under section 414(v) regarding catch-up contributions necessitate compliance from businesses managing retirement plans, impacting financial and operational strategies. Specifically, the requirement to designate certain catch-up contributions as Roth contributions may alter employer contributions and plan designs, necessitating adjustments in payroll and compliance practices.