Seyfarth Synopsis: New proposed regulations issued by The Department of Treasury and IRS provide guidance on the provisions related to catch-up contributions that were included under SECURE 2.0 Act of 2022 (“SECURE 2.0”).
The recently issued proposed regulations address several changes to the catch-up contribution provisions made by SECURE 2.0, including the following:
- Section 603, which requires that catch-up contributions for certain participants be made on a Roth basis (i.e., the Roth Catch-Up Requirement); and
- Section 109, which increased the applicable catch-up dollar limit for those who attain age 60, 61, 62 or 63 during the plan year.
The much-welcomed proposed regulations answer a number of open questions that we had been grappling with following the issuance of SECURE 2.0.
Click here to read our full Legal Update which discusses the proposed regulations, answered (and unanswered) questions addressed by the proposed rules, as well as a few administrative considerations for plan sponsors and administrators.
We encourage you to speak with your Seyfarth Shaw Employee Benefits attorney to update plan documents and participant communications and prepare for the implementation of these provisions.