{"id":20627,"date":"2023-08-25T21:09:31","date_gmt":"2023-08-25T21:09:31","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2023\/08\/25\/irs-extends-deadline-for-catch-up-contributions-in-new-secure-2-0-guidance\/"},"modified":"2023-08-25T21:09:31","modified_gmt":"2023-08-25T21:09:31","slug":"irs-extends-deadline-for-catch-up-contributions-in-new-secure-2-0-guidance","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2023\/08\/25\/irs-extends-deadline-for-catch-up-contributions-in-new-secure-2-0-guidance\/","title":{"rendered":"IRS Extends Deadline for Catch-Up Contributions in New Secure 2.0 Guidance"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/789584078\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2022\/10\/IRS_Building_Sign_BB_640x640.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2022\/10\/IRS_Building_Sign_BB_640x640.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<div class=\"the-advisor bullet-summary\">\n<h3>What You Need to Know<\/h3>\n<ul>\n<li>Catch-up contributions made by wealthy 401(k) participants must be designated as after-tax Roth contributions by 2026.<\/li>\n<\/ul>\n<\/div>\n<p id=\"first-para\">The Internal Revenue Service said Friday that it has granted an&nbsp;administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher\u2011income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions.<\/p>\n<p>The IRS also clarified in <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-23-62.pdf\" target=\"_blank\" rel=\"noopener\">Notice 2023-62 <\/a>that plan participants who are age 50 and older can continue to make catch\u2011up contributions after 2023, regardless of income.<\/p>\n<p>The notice provides initial guidance for Section 603 of the Secure 2.0 Act, enacted in December 2022.<\/p>\n<p>\u201cUnder that provision, starting in 2024, the new Roth catch-up contribution rule applies to an employee who participates in a 401(k), 403(b) or governmental 457(b) plan and whose prior-year Social Security wages exceeded $145,000,\u201d the IRS states.<\/p>\n<p>The administrative transition period, the agency explained, \u201cwill help taxpayers transition smoothly to the new Roth catch-up requirement and is designed to facilitate an orderly transition for compliance with that requirement.\u201d<\/p>\n<p>The IRS notice also clarifies that the SECURE 2.0 Act \u201cdoes not prohibit plans from permitting catch-up contributions, so plan participants who are age 50 and over can still make catch-up contributions after 2023.\u201d<\/p>\n<p><em><strong>See: <a href=\"https:\/\/www.thinkadvisor.com\/2023\/05\/18\/beware-the-pitfalls-of-secure-2-0-wade-pfau\/\" target=\"_blank\" rel=\"noopener\">Beware the Pitfalls of Secure 2.0: Wade Pfau<\/a><\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What You Need to Know Catch-up contributions made by wealthy 401(k) participants must be designated as after-tax Roth contributions by 2026. The Internal Revenue Service said Friday that it has granted an&nbsp;administrative transition period&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":20628,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2023\/08\/irs-extends-deadline-for-catch-up-contributions-in-new-secure-2-0-guidance.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20627"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=20627"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20627\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/20628"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=20627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=20627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=20627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}