Is your business prepared to implement the SECURE 2.0 Act’s Roth catch-up contribution rule? The rule requires that catch-up contributions made by certain high earners be invested in Roth accounts rather than traditional 401(k) plans. Earlier IRS guidance enabled a two-year administrative transition period, but time is almost up and the rule is scheduled to take effect on Jan. 1, 2026. You may need to program your payroll system to identify employees age 50 or older who earned more than the $145,000 FICA wage threshold in 2025 and to automatically direct their 2026 catch-up contributions to a Roth account. You may also need to update your retirement plan documents. Contact us for details.
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