You Make My Dreams Come True! IRS Delays Roth Catch-Ups
You don’t have to be a connoisseur of 1980s pop (we see you, Hall & Oates fans!) to appreciate the relief the IRS granted the retirement industry. In Notice 2023-62, the IRS announced a two-year delay on the Roth catch-up requirements for those earning more than $145,000. All eligible participants – regardless of income – may make catch-up contributions on a pre-tax basis (or Roth basis, at participant election but not required) until January 1, 2026.
This should give employers, recordkeepers, and payroll administrators some transition time to update systems to manage this new requirement, one of the key provisions in SECURE 2.0. The Departments intend to issue further guidance to assist with implementation.