{"id":161450,"date":"2025-09-16T18:54:39","date_gmt":"2025-09-16T18:54:39","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/161450\/"},"modified":"2025-09-16T18:54:39","modified_gmt":"2025-09-16T18:54:39","slug":"irs-releases-final-regulation-for-roth-catch-up-contributions","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/161450\/","title":{"rendered":"IRS Releases Final Regulation for Roth Catch-Up Contributions"},"content":{"rendered":"

The Internal Revenue Service (IRS) and Treasury Department on Monday issued<\/a> final regulations on a SECURE 2.0 provision that would mandate Roth catch-up contributions by select high-income participants who have reached age 50. \u00a0<\/p>\n

According to the agencies, Roth catch-up requirements will generally apply to contributions in taxable years beginning after Dec. 31, 2026. The IRS and the Department of Treasury will provide a later applicability date for certain governmental plans and plans maintained under a collective bargaining agreement.<\/p>\n

The final rules take into consideration comments received in response to proposed regulations<\/a> issued by the IRS and the Treasury Department in January. For example, the final regulations allow a plan administrator to collect wages \u201creceived by a participant in the prior year from certain separate common law employers in determining whether the participant is subject to the Roth catch-up requirement,\u201d states the agencies. <\/p>\n

Under the original provision, Section 603 of SECURE 2.0, participants with a salary of or over $145,000 and who reach age 50 would make catch-up contributions to a qualified retirement plan on a Roth basis. The regulation was set to go into effect after Dec. 31, 2023, but was later postponed<\/a> by the IRS to give administrators and custodian adequate time to understand and implement the rules.<\/p>\n

The National Association of Government Defined Contribution Administrators (NAGDCA) would later release<\/a> a letter\u00a0asking the Treasury Department and the Internal Revenue Service (IRS) to further delay the provision for government plans, noting<\/a> how other plan types had received extra time to implement the provision.<\/p>\n

The final regulation also includes changes to certain provisions in the proposed regulations, including those relating to a correction of a failure to comply with the Roth catch-up requirement; implementation of a deemed Roth election; and plans that cover participants in Puerto Rico, noted the agencies.<\/p>\n

The final regulations also allow employers to incorporate the Roth catch-up requirement for taxable years beginning before 2027 using \u201ca reasonable, good faith interpretation of statutory provisions.\u201d<\/p>\n

Both agencies add that the final regulations do not extend or modify the administrative transition period provided under\u00a0Notice 2023-62<\/a>, which generally ends on Dec. 31, 2025.<\/p>\n

A copy of the final regulations will be published on Sept. 16. A full look at the advanced copy can be found here<\/a>.<\/p>\n

\"Amanda<\/a><\/p>\n

Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.<\/p>\n

\n\tRelated<\/p>\n","protected":false},"excerpt":{"rendered":"The Internal Revenue Service (IRS) and Treasury Department on Monday issued final regulations on a SECURE 2.0 provision…\n","protected":false},"author":2,"featured_media":161451,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,98133,98134,147,530],"class_list":["post-161450","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-catch-up-contribution","tag-internal-revenue-service-irs","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/161450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=161450"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/161450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/161451"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=161450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=161450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=161450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}