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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.

Assuming your income is under the IRS income threshold, you could make contributions to a Roth IRA. For 2024 and 2025, the annual maximum IRA contribution is $8,000—which includes a $1,000 catch-up contribution—if you're 50 or older. Under the SECURE Act 2.0, future catch-up contribution amounts will be indexed to inflation.

Making catch-up contributions on an after-tax Roth basis means paying taxes on your retirement savings during years when you sometimes earn more. Super catch-up 2025 limits: Bottom line

Catch-up contributions increased in 2025 for 401(k), 403(b), governmental plans, and IRA account holders for employees between the ages of 60 and 63. ... After 15 years, 529 plan assets can be transferred to a Roth IRA for the designated beneficiary, subject to annual Roth contribution limits and an aggregate lifetime limit of $35,000. The ...

IR-2023-155, Aug. 25, 2023. WASHINGTON — Today, the Internal Revenue Service announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher‑income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions.

For 2025, the max contribution amount is $23,500, and a total of $31,000 with 2025 catch-up contributions for those 50-59 and 64+. If you're 60-63, that total is $34,750 (the $23,500 base limit ...

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.

Determining the Roth catch-up contributions for purposes of the rule. ... For 2025, the catch-up limit for this group is $11,250 instead of $7,500. In future years, the limit will be adjusted for cost of living. If an employee is currently age 59 but will be age 60 by the end of the year, the super catch-up rule would apply to that employee. ...

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

When determining whether an employee qualifies for the Roth restriction on catch-up contributions, there will be no proration of wages for the prior year. Thus, new 2026 employees and those who worked for part of 2025 will only have their 2026 catch-up contributions designated as Roth if their Federal Insurance Contributions Act (FICA) wages ...

SECURE 2.0 §603 mandated that catch-up contributions of individuals earning more than $145,000 (as adjusted in years starting with 2025) in FICA wages in the prior year must be in the form of designated Roth contributions (“Roth”).

GUIDANCE ON MANDATORY ROTH CATCH-UP CONTRIBUTIONS. The proposed regulations issued in January 2025 respond to many of the stakeholder questions and concerns that were raised following the enactment of SECURE 2.0 and provide helpful guidance on how to interpret and apply the mandatory Roth catch-up contribution requirement.

All catch-up contributions for eligible participants earning above the IRS threshold must be made as Roth contributions. The IRS threshold is based on the employee’s 2025 FICA wages (IRS Code Section 3121(a)), which differs from the standard HCE definition used for nondiscrimination testing.

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

By Ian Berger, JDIRA Analyst One of the more controversial rules in the 2022 SECURE 2.0 Act is the requirement that plan catch-up contributions by certain highly-paid employees be made on a Roth basis. Last Friday, (January 10, 2025) the IRS issued proposed regulations on the new rule. Congress intended for the Roth catch-up mandate to be effective on January…

Starting in 2025, SECURE 2.0 raised the catch-up contribution amount (called a super catch-up) for participants ages 60 to 63. Regular and super catch-up contributions are typically made on a pretax basis, but plan sponsors may allow participants to elect Roth instead. What’s changing under the new Roth catch-up contribution rule?

The IRS published proposed regulations (REG-101268-24) on Jan. 13, 2025, addressing the new Roth catch-up contribution rule enacted as part of SECURE 2.0 in December 2022.The new Roth catch-up contribution rule generally requires all catch-up contributions to be made on a Roth basis for employees with wages exceeding $145,000.

2025 is $11,250. The Roth catch-up wage threshold for 2024, which under section 414(v)(7)(A) is used to determine whether an individual’s catch-up contributions to an applicable employer plan (other than a plan described in section 408(k) or (p)) for 2025 must be designated Roth contributions, remains $145,000.

On January 10, 2025, the Treasury Department and the IRS issued proposed regulations providing guidance on the 401(k) catch-up contributions updated by SECURE 2.0. Significant changes include increased catch-up limits for those aged 60 to 63 and mandatory Roth contributions for high earners making more than $145,000.