ARTICLE | September 07, 2023
The Internal Revenue Service (IRS) has recently released guidance on Roth catch-up contributions under SECURE 2.0 Act. This guidance, outlined in Notice 2023-62, provides important information for individuals who are age 50 or older and participating in a retirement plan that allows deferral contributions. The Notice offers a two-year extension of the effective date for catch-up contributions being on a Roth basis for high-income individuals, as well as confirming the availability of catch-up contributions for tax years after December 31, 2023. This extension provides additional time for employers, plan recordkeepers, and payroll companies to implement the necessary changes required by the Act. To learn more about the new guidance and its implications for retirement planning, click the link below.
In this post from RSM we see some insights regarding the IRS’s recent guidance on Roth catch-up contributions under SECURE 2.0 Act, and how it impacts individuals age 50 and older, as well as employers and plan sponsors. The article discusses the two-year extension of the Roth catch-up contribution requirement, the clarification on catch-up contributions after 2023, and other issues that still require further guidance from the IRS. Understanding these updates is crucial for maximizing retirement savings and ensuring compliance with the new regulations.
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