Notice to Participants about Roth Catch-up in 2024

Anyone have a sample notice they have seen / prepared that they are willing to share?  I assume some of the big providers have put something together...

I was working on something for our employers without Roth, and a notice for employees.  I've had plenty of clients ask me about it.  Then things came to a screeching halt in a little company meeting last week.

There is apparently an increasing push by powerful players to delay the Roth-ification of catch-up because payroll and recordkeeping systems aren't prepared to accommodate it by January 1, 2024.  And there's also that niggling argument that catch-up, in general, will be disallowed effective in 2024 due to the technical error in the SECURE 2.0 language . . . So, as seems to be the case with all things SECURE, we're "waiting for guidance."  Sigh. 

We are sitting tight for the moment.

I heard the same but I don't see how it is even possible since this is how they paid for the entire bill. 

You may find this survey conducted by the PSCA about preparedness for implementation of the Roth Catch-Up provision:

Roth catch-up status.pdf

Congress’s repeal before the statute’s applicability date seems unlikely. Among many reasons, the Joint Committee on Taxation estimated the revenue raised by SECURE 2022’s § 603 as $16.637 billion for fiscal years 2024-2032.

A July 19 letter asks the Treasury department for “transition relief.” In context and by implication, the letter asks for a year’s nonenforcement.

If the Internal Revenue Service declines to apply Internal Revenue Code of 1986 § 414(v)(7), it’s doubtful any taxpayer has constitutional standing to seek a court’s order commanding the IRS to enforce § 414(v)(7).

I don’t guess anything about whether the Treasury department might openly declare, or quietly set, a nonenforcement policy.

12 hours ago, Peter Gulia said:

Congress’s repeal before the statute’s applicability date seems unlikely. Among many reasons, the Joint Committee on Taxation estimated the revenue raised by SECURE 2022’s § 603 as $16.637 billion for fiscal years 2024-2032.

I put it more in "pipe dream" territory than unlikely...

12 hours ago, Peter Gulia said:

I don’t guess anything about whether the Treasury department might openly declare, or quietly set, a nonenforcement policy.

I'll guess 🤔.  I think this is a big enough issue that they have to provide something that practitioners can rely on, even if its just a notice of nonenforcement.