SECURE 2.0 Roth treatment of catch-up contributions

Will the compensation threshold of $145,000 be increased?  In other words, do we know what the indexed amount will be at that date or will it be $145,000 and indexed moving forward after 1/1/2026

Internal Revenue Code of 1986 § 414(v)(7)(E) provides:

In the case of a year beginning after December 31, 2024, the Secretary shall adjust annually the $145,000 amount in subparagraph (A) for increases in the cost-of-living at the same time and in the same manner as adjustments under [§] 415(d); except that the base period taken into account shall be the calendar quarter beginning July 1, 2023, and any increase under this subparagraph which is not a multiple of $5,000 shall be rounded to the next lower multiple of $5,000.

http://uscode.house.gov/view.xhtml?req=(title:26 section:414 edition:prelim) OR (granuleid:USC-prelim-title26-section414)&f=treesort&edition=prelim&num=0&jumpTo=true
 

IRS Notice 2024-80: 

"The Roth catch-up wage threshold for 2024, which under section 414(v)(7)(A) is used to determine whether an individual’s catch-up contributions to an applicable employer plan (other than a plan described in section 408(k) or (p)) for 2025 must be designated Roth contributions, remains $145,000."

https://www.irs.gov/pub/irs-drop/n-24-80.pdf

What youngbenefitslawyer seeks is the § 414(v)(7) amount for 2025 wages that set whether 2026’s age-based catch-up deferrals must be Roth contributions.

We presume that adjustment won’t be IRS-announced until next October’s or early November’s notice. (Some BenefitsLink mavens form estimates.)

A retirement plan I advise communicates the plan’s § 414(v)(7) provision to employees with a yearly salary more than $120,000. The idea is to allow some room for changes that might put an employee’s § 3121(a) wages over the applicable § 414(v)(7) amount.