September 2023
Retirement plan administrators have been granted a reprieve from a frustrating upcoming deadline thanks to the SECURE 2.0 Act of 2022. This law, passed under the Consolidated Appropriations Act of 2023, impacts catch-up contributions for certain retirement account holders. While the law originally required plan administrators to designate specific contributions as Roth contributions, regardless of the account holder's preference, starting after December 31, 2023, the IRS has announced a two-year "administrative transition period." During this period, the new catch-up contribution rule won't apply for tax years 2024 and 2025. It will take effect for contributions on or after January 1, 2026.
