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Quade | New 401(k) Plan Requirements End Pre-Tax Catch-Up Contributions for High Earners

February 25, 2025 – Quade Blog

On January 10, 2025, the Internal Revenue Service (IRS) issued proposed regulations that provide guidance on age-based catch-up contributions for retirement plans. Under Internal Revenue Code (Code) Section 414(v), plans may (but are not required to) allow participants in 401(k) plans who are aged 50 or older to make “catch-up” contributions to their plan accounts that are in addition to regular deferrals. These age 50 catch-up contributions may be made regardless of any other limits imposed on elective deferrals under the Code. The proposed regulations reflect statutory changes made by Sections 603 and 109 of the SECURE 2.0 Act of 2022, and affect retirement plan participants, beneficiaries, employers, and administrators.

Click here to read the full article written by Lindsay Knowles, Shalina Schaefer, and Tara Sciscoe published in Quade's blog.

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