IR-2025-07, Jan. 10, 2025 — The Department of the Treasury and the Internal Revenue Service issued proposed regulations today addressing several SECURE 2.0 Act provisions relating to catch-up contributions, which are additional contributions under a 401(k) or similar workplace retirement plan that generally are allowed with respect to employees who are age 50 or older.
Significant changes to 401(k) plans are coming in 2026, and if you make age 50+ catch-up contributions, you may need to be prepared. Under SECURE Act 2.0, employees earning above a certain threshold will be required to make catch-up contributions as Roth rather than pre-tax.
In 2023, workers 50 and older can make catch-up contributions of up to $7,500, in addition to the standard $22,500 maximum for 401(k) and other employer-provided plans. The case for Roth contributions
IRS Issues Guidance on Mandatory 401(k) Roth Catch-up Starting in 2026 Starting January 1, 2026, high-income earners will face a significant shift in retirement savings rules due to the new Mandatory Roth Catch-Up Contribution requirement. If you earn more than $145,000 annually (indexed for inflat
2. Make the most of catch-up provisions. Once you reach age 50, catch-up provisions in the tax code allow you to increase your tax-advantaged savings in several types of retirement accounts. For a traditional or Roth IRA, the annual catch-up amount in 2024 and 2025 is $1,000, which boosts your total contribution potential to IRAs to $8,000.
The IRS has issued proposed regulations on provisions of the SECURE 2.0 Act of 2022 that affect catch-up contributions under 401(k), 403(b) and governmental 457(b) plans. SECURE 2.0 requires that participants with FICA wages over $145,000 (as adjusted) may only make catch-up contributions as Roth contributions (i.e., the Roth catch-up requirement).
The Roth catch-up requirement significantly changes retirement plan administration, affecting plan sponsors, payroll companies, plan recordkeepers, third-party administrators, ERISA consultants, and plan participants. ... Roth 401(k) 401(k) catch-up contributions; Retirement plan sponsors; Retirement plan; Related viewpoints. August 30, 2023.
Increased Catch-Up Contributions for Ages 60-63. Section 109 of SECURE 2.0 increases the catch-up limit for individuals aged 60-63 to the greater of $10,000 or 150% of the regular catch-up limit ($11,250 for 2025). Key details include: Age Range: The enhanced limit applies from the year an individual turns 60 until the year they turn 64.
Applicability Dates: January 1, 2025 for Super Catch-Up and January 1, 2026 for Roth Catch-Up. Under SECURE 2.0, the Roth catch-up rule was effective for taxable years beginning after December 31, 2023, while the super catch-up rule was effective for taxable years beginning after December 31, 2024.
The proposed regulations focus on the requirement imposed by Section 603 of SECURE 2.0 that catch-up contributions for higher income participants in Section 401(k), 403(b), and governmental 457(b) plans be designated as Roth contributions (the “mandatory Roth catch-up” provision). They also touch on the optional design change under Section 109 of SECURE 2.0 that permits
1 The universal availability requirement for catch-up contributions applies to all participants participating in all 401(k) and non-ERISA 403(b) plans of the same employer (on a controlled group basis).. 2 SECURE 2.0 states that the statutory effective is taxable years beginning after December 31, 2023 (i.e., beginning January 1, 2024) for the new mandatory Roth catch-up contribution requirements.
The new requirement applies to 401(k), 403(b) and governmental 457(b) plans. The provision also requires plans to permit all participants to make Roth catch-up contributions if any participant in the group is required to do so. Although the majority of non-governmental plans already permit Roth contributions, there is no precedent for this new ...
The Roth mandate applies to 401(k), 403(b) and governmental 457(b) plans – but not to SIMPLE IRA plans. ... The threshold on 2025 wages for determining required Roth catch-up contributions for 2026 (when the rule becomes effective) will not be available until the end of this year. Self-employed individuals have self-employment income, not wages.
The IRS is offering relief on new 401(k) catch-up contribution rules for certain high earners. ... The agency says Roth catch-up contributions for high earners age 50 or over won’t be required ...
The proposed regulations are for the requirement imposed by SECURE 2.0 that catch-up contributions for highly compensated employees in Section 401(k), 403(b), and governmental 457(b) plans be designated as Roth contributions (the “mandatory Roth catch-up” provision). The Roth catch-up requirement was originally scheduled to become effective ...
SECURE 2.0 regs require high-paid 401(k)/403(b)/457(b) plans to use mandatory Roth catch-up from Jan 2026. Plan sponsors, prepare for compliance New Mandatory Roth Catch-Up Rules under SECURE 2.0
One of the more controversial provisions of the new SECURE 2.0 law concerns 401(k) catch-up contributions. Most 401(k) plans – as well as 403(b) and governmental 457(b) plans – permit employees who are age 50 or older to make catch-up contributions. The limit for catch-ups in 2023 is $7,500, allowing for total elective deferrals of up to $30,000.
Increases catch-up limits to the greater of $10,000 ($5,000 for SIMPLE plans) or 50% more than the regular catch-up amount in 2025 for individuals who have attained ages 60, 61, 62, and 63. ... Provides that all catch-up contributions to qualified retirement plans are subject to Roth tax treatment. An exception is provided for employees with ...
