IRS Issues Guidance on New Retirement Catch-up Contribution Rules
Understanding the new requirements
In December 2022, President Joe Biden signed the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act.
Among other things, the sweeping new law made some significant changes to so-called catch-up contributions, with implications for both employers and employees.
With the new catch-up provisions scheduled to kick in after 2023, many retirement plan sponsors have been struggling to institute the necessary processes and procedures to comply. In recognition of taxpayer concerns, the Internal Revenue Service (IRS) recently provided some relief in Notice 2023-62. In addition to extending the deadline, the new guidance corrects a technical error in SECURE 2.0 that had left taxpayers and their advisors confused about the continued availability of catch-up contributions for employees.
Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett.