On Friday, August 25, 2023, the IRS announced that the section of SECURE 2.0 with respect to Catch-Up Contributions, is being delayed until 2026. This provision stated that all employees who earned compensation greater than $145,000 in the prior year must have their 401(k) elective deferral catch-up contributions be designated as Roth. This was originally set to take effect January 1, 2024, but is now being pushed until 2026.

No action is required.  Just a heads up that 401(k) elective deferral catch-up contributions are not required to be designated as Roth next year.

To discuss your Retirement Plan & Investment Opportunities, contact Joseph Hodakowski, CPA, PFS and learn more at www.bkcwealth.com.

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