IRS Guidance Coming as Employers Seek 401(k) Catch-Up Rule Delay

Employers are optimistic that impending IRS guidance on new high-income, post-tax 401(k) catch-up contributions will delay enforcement long enough for them to ready their retirement plans.

Plan sponsors and lobbyists have spent the last few months prodding the IRS to delay implementing the SECURE 2.0 Act (Pub. L. No. 117-328) rule by at least a year. The regulation would effectuate a provision in the landmark retirement access law Congress passed late last year that requires high-income retirement plan catch-up contributions to be made in the form of post-tax Roth deferrals.

There isn’t enough time to prepare third-party service ...