The IRS has announced a two-year transition period in the implementation of the SECURE 2.0 Act’s Roth catch-up contribution rule. Generally, taxpayers age 50 or older are allowed to make additional “catch-up” contributions to employer-sponsored retirement plans such as 401(k)s. SECURE 2.0 requires catch-up contributions by taxpayers who earned more than $145,000 (indexed for inflation) in Social Security wages the previous year be made on a Roth (after-tax) basis. The new rule was to go into effect in 2024, but plan administrators requested additional time to modify systems to implement the change. The IRS has extended the effective date to 2026. For more information: https://bit.ly/3qQChJ3
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