IRS Releases Final Regulations on SECURE 2.0 Catch-Up Provisions

The Internal Revenue Service (IRS) has issued final regulations providing guidance for employers regarding new provisions on catch-up contributions as permitted by the SECURE 2.0 Act of 2022 (SECURE 2.0).

The SECURE 2.0 provisions addressed in the final regulations require Roth treatment of catch-up contributions for certain employees (Section 603), an optional enhanced catch-up limit for employees ages 60–63 (Section 109), and increased contribution limits for employees age 50 or older for certain SIMPLE IRA plans and SIMPLE 401(k) plans (Section 117).The IRS notes that while the final regulations generally follow the proposed regulations, several changes were made in response to comments received on the proposed regulations.

This guidance will be reviewed, and additional details provided. The regulations are effective 60 days after publication in the Federal Register and generally apply with respect to contributions in taxable years beginning after December 31, 2026, unless otherwise noted. The final regulations do not extend or modify the administrative transition period provided under Notice 2023-62, which generally ends on Dec. 31, 2025, and requires a reasonable good faith interpretation of statutory provisions for taxable years beginning before 2027.