One of the many changes made by the SECURE Act 2.0 was that, starting in 2024, catch-up contributions to 401(k), 403(b), and governmental 457(b) plans would have to be Roth (rather than tax-deferred) for any employee whose wages from the employer in question in the prior year were more than $145,000.
Many employers and plan administrators complained, arguing that they wouldn’t be able to implement the necessary systems in time. (Previously, catch-up contributions to such plans weren’t even allowed to be Roth, so there’s a bunch of software-related work to be done.)
The IRS recently agreed that more time was needed and announced that the new requirement won’t go into effect until 2026:
Other Recommended Reading
Experts Fear Crooks are Cracking Keys Stolen in LastPass Breach from Brian Krebs
What We Lose When We Retire from Jonathan Clements
Understanding Securities Lending as a Source of Additional Return and Risk from Zachary Evens and Lan Anh Tran
Why Are Mortgage Rates So High? from Ben Carlson
Investors Expect Investment Returns Twice as High as Advisors from Alex Padalka
Social Security Timing – SWR Series Part 59 from Karsten Jeske
How to Thrive as a Solo Ager in Retirement from Richard Eisenberg
A Common Criticism of Monte Carlo is Unfounded from David Blanchett
Government Money Market Funds Are Hot. There’s a State-Tax Catch from Laura Saunders
Thanks for reading!
What is the Best Age to Claim Social Security?
Read the answers to this question and several other Social Security questions in my latest book:
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