A glitch in the recently passed SECURE 2.0 Act involving catch-up contributions has been uncovered. A trade group, the American Retirement Association, noticed a technical error and has alerted the U.S. Treasury Dept. and the Joint Committee on Taxation (JCT), which are studying how to correct it. The law was supposed to allow certain taxpayers to make larger catch-up contributions, but instead, the ability to make any pre-tax catch-up contributions was inadvertently eliminated. Also, the text of SECURE 2.0 regarding Roth catch-up contributions appears to put future contributions at risk. The JCT has acknowledged that the error appears to be technical. Stay tuned for more.
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