WASHINGTON, D.C. — The Department of the Treasury and the Internal Revenue Service (IRS) have unveiled proposed regulations addressing key provisions of the SECURE 2.0 Act related to retirement plan catch-up contributions. These proposed rules outline changes aimed at guiding plan administrators and participants, particularly higher-income earners and individuals approaching retirement age.
A major change highlighted in the proposal is the requirement for certain higher-income participants to make catch-up contributions as after-tax Roth contributions. This rule applies to employees earning above a specified income threshold, ensuring compliance with the SECURE 2.0 directive.
The regulations also provide guidance on implementing increased catch-up contribution limits for specific groups. Employees aged 60 to 63 and participants in newly established Savings Incentive Match Plans for Employees (SIMPLE plans) stand to benefit from elevated contribution allowances under these provisions.
Treasury and IRS officials have called for public input on the proposed regulations. Comments will be accepted via the Federal Register through March 14, 2025. Additionally, a public hearing is scheduled for April 7, 2025, with stakeholders invited to submit outlines of topics they wish to discuss by the March deadline.
These updates are part of broader efforts under the SECURE 2.0 Act to modernize retirement savings and promote financial security for American workers in their later years. If finalized, the regulations are expected to make significant changes to the administration of workplace retirement plans.
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