On August 25, 2023, the Internal Revenue Service issued Notice 2023-62 providing guidance for a two-year administrative transition period that serves to delay until January 1, 2026, the implementation date of the provision in the SECURE 2.0 Act that requires age-50 catch-up contributions for individuals who earned over $145,000 in the prior year be made on a Roth basis. The provision was initially set to take effect on January 1, 2024.
The news is welcomed relief for plan sponsors and others involved in the administration of retirement plans, including payroll providers and recordkeepers. The delay will provide additional time for the Department of Treasury and IRS to draft the necessary guidance and for vendors to then operationalize the requirements. The recordkeeper of your plan has likely been working on procedures to help you satisfy the original effective date of January 1, 2024, so expect them to provide additional guidance and information specific to you and your plan in the upcoming weeks.
The information herein is general in nature and may not be considered legal or tax advice. You should consult an attorney or tax professional regarding your specific situation.
This material is provided for informational and educational purposes only. You should not assume any discussion or information contained in this newsletter serves as the receipt of, or a substitute for, personalized investment advice. Due to various factors, including changing market conditions and/or applicable laws, the content of this newsletter may no longer be reflective of current opinions or positions. Please remember that past performance may not be indicative of future results. There can be no assurance that any specific investment, investment strategy, or product will be profitable, equal past performance, or be suitable for you. Contact Everhart Advisors in writing if there are any changes in your personal or financial situation or investment objectives that would be material to our evaluating our previous recommendations, or if you want to add or modify any reasonable restrictions on your account.
This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax, or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
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