Editor's note: Clarified the effective timeline for the new Roth catch-up contribution rules.
The U.S. Treasury Department and the Internal Revenue Service (IRS) have issued the final regulations for retirement “catch-up” contributions, outlining the application of the SECURE 2.0 Act provisions.
New SECURE 2.0 Rules Impact High-Income Workers
The finalized rules, released this week, detail the implementation of the Roth catch-up requirement, which will affect certain higher-income workers.
“Catch-up” contributions allow employees aged 50 and older to contribute additional funds to workplace retirement plans. The SECURE 2.0 Act now requires some higher-income workers to make these contributions on an after-tax Roth basis instead of pre-tax.
Under the SECURE 2.0 Act, higher-income workers earning $145,000 or more must direct their “catch-up” contributions into Roth accounts rather than pre-tax accounts. This means they'll pay taxes on those contributions upfront, but the funds will grow tax-free and can be withdrawn without tax in the future.
The finalized regulations also cover additional provisions of the SECURE 2.0 Act, such as increased catch-up contribution limits for workers aged 60 to 63 and guidelines for employees participating in newly established SIMPLE retirement plans.
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New Retirement Rules Phase In by 2027
The Treasury Department's finalized regulations set a transition period through 2026 to give employers and plan administrators time to adapt to the new Roth catch-up rules, with full compliance expected by 2027. Certain governmental and collectively bargained plans will have extended implementation timelines.
Beyond the catch-up changes, the SECURE 2.0 Act—signed into law in December 2022—includes more than 90 provisions designed to expand retirement plan access, increase savings opportunities, and simplify plan administration across 401(k), 403(b), SIMPLE, and IRA accounts.
IRS Denies Stimulus Check Rumor; Retirement Trends Shift
The IRS has been actively working to streamline tax-related matters. Previously, it denied rumors of a new $1,390 stimulus check, designed to support low and middle-income consumers in navigating the current cost-of-living crisis
The retirement landscape has also been shifting, with one in three Americans delaying retirement due to economic uncertainty and inflation. Despite this, retirement accounts have been growing, with 401(k)-created millionaires reaching a record high in Q2 2025. The new regulations under the SECURE 2.0 Act could further impact these trends, especially for higher-income workers.
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