Investing Blog Roundup: Roth Catch-Up Rule Delayed

One of the many changes made by the SECURE Act 2.0 was that, starting in 2024, catch-up contributions to 401(k), 403(b), and governmental 457(b) plans would have to be Roth (rather than tax-deferred) for any employee whose wages from the employer in question in the prior year were more than $145,000.

Many employers and plan administrators complained, arguing that they wouldn’t be able to implement the necessary systems in time. (Previously, catch-up contributions to such plans weren’t even allowed to be Roth, so there’s a bunch of software-related work to be done.)

The IRS recently agreed that more time was needed and announced that the new requirement won’t go into effect until 2026:

IRS Announces Administrative Transition Period for New Roth Catch Up Requirement from the IRS

Other Recommended Reading

• Experts Fear Crooks are Cracking Keys Stolen in LastPass Breach from Brian Krebs
• What We Lose When We Retire from Jonathan Clements
• Understanding Securities Lending as a Source of Additional Return and Risk from Zachary Evens and Lan Anh Tran
• Why Are Mortgage Rates So High? from Ben Carlson
• Investors Expect Investment Returns Twice as High as Advisors from Alex Padalka
• Social Security Timing – SWR Series Part 59 from Karsten Jeske
• How to Thrive as a Solo Ager in Retirement from Richard Eisenberg
• A Common Criticism of Monte Carlo is Unfounded from David Blanchett
• Government Money Market Funds Are Hot. There’s a State-Tax Catch from Laura Saunders

Thanks for reading!