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The IRS released the unpublished version of the final catch up regulations which should be published in tomorrow's Federal Register. For 94 pages of reading enjoyment for those who can wait, see here https://public-inspection.federalregister.gov/2025-17865.pdf The final version should be here tomorrow https://www.federalregister.gov/public-inspection/2025-17865/catch-up-contributions One interesting right up front is "Applicability date: These regulations generally apply with respect to contributions in taxable years beginning after December 31, 2026. However, see §§1.401(k)-1(f)(5)(iii), 1.414(v)-1(i)(2), and 1.414(v)-2(e)(2) and the Applicability Dates section later in this preamble for additional details regarding applicability dates."

Correct the address.

Even if the suggested interpretation of ERISA’s title I and the Internal Revenue Code might be reasonable (and I don't suggest that it is), what does the plan’s governing document provide?

"The final regulations do not extend or modify the administrative transition period provided under Notice 2023-62."

I would just say that people do not know when they are going to retire when they are even 40 years old, let alone 25. If you're getting to be 55 and 60 years old, absolutely you should be sharpening your pencil. 65 seems as good a guess as any is what I mean. I also would say that your date of retirement probably is not as important as how long you're going to be among the living :). So if you're life expectancy at 65 is 25 years (God bless!) then I would say your investment strategy would probably be the same whether or not you stop working.

Observe that the rule’s applicability dates refer to “taxable years”—a participant’s tax year.

There is no way to do what the client wants if the former employee even had $1 of employee deferrals in the 401(k) plan. The Rule of Parity says it only applies if they never had a vested balance with the old service. See the older discussion of the topic. Hope that helps.

I agree.