The Council advocated for a delay in the implementation of new Roth catch-up contribution requirements under SECURE 2.0, which would require workers earning over $145,000 to make catch-up contributions on a Roth (after-tax) basis. Member firms raised concerns about the administrative burden and systems readiness for plan sponsors and record-keepers ahead of the January 2024 effective date. The IRS subsequently provided transitional relief in response to industry concerns.
The Council joined over 100 organizations to send a letter to Capitol Hill and Treasury in support of a two-year delay for the effective date of a catch-up provision included in SECURE 2.0, in recognition that many Americans have not have adequately saved for retirement. The provision would require that workers who earned over $145,000 in the preceding year from the current employer must make their catch-up contributions on a Roth basis. We are requesting this effective date be pushed from 2024 to January 2026.
