The IRS recently released final regulations regarding the Roth catch-up contribution requirement from SECURE Act 2.0 (i.e., the new rule stating that, for people whose wages in the previous year from the employer in question exceeded a certain threshold, any catch-up contributions to the employer-sponsored plan this year must be made as Roth rather than tax-deferred).
Among other things, the new regulations clarify that “applicability of the Roth catch-up requirement to a participant is based on the prior year FICA wages reported in Box 3 of Form W-2 for the participant.” Key points being: self-employment income doesn’t count (i.e., won’t trigger the requirement), nor would wages earned by a government employee that are not subject to Social Security tax.
The regulations will generally be applicable beginning in 2027.
Other Recommended Reading
- Northeastern’s Summer Jobs Program Implements Longtime WSJ Columnist’s Legacy Cyrus Moulton
- The Frustration of Being Disabled from Jim Dahle
- Going Terminally Offline from Nick Maggiulli
- It’s So Simple: Fees Predict Performance from Jeff Ptak
- Navigating the Unknowns of Financial Decisions from Adam Grossman
- Thinking Outside the Box to Build a Better Income Portfolio from Allan Roth
- T. Rowe Price Launches Blue Bond Fund Backed by Walmart Heir from Natasha White, Esteban Duarte
- 10 Things I’ve Learned About Wealth Management in 10 Years from Ben Carlson
- I’ve Written About Loads of Scams. This One Almost Got Me. from Michael Wilson (NYT)
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Hi. I'm Mike Piper, the author of this blog. I'm 
