Legislative Updates for Roth Catch-Up Contributions (Secure 2.0 Act, Title VI - Section 603)

Summary:

We need clarity on what planned features will be released to support pre-Tax to Roth conversion for employees making catch-up contributions. This is required by Section 603 of the Secure 2.0 Act staring Jan 1, 2026.

Content (please ensure you mask any confidential information):

The Secure 2.0 Act specifies that employees making more than 145,000 per year and over 50 years old need to make catch up contributions on a Roth/post-tax basis. In other words, employees who have elected to contribute to their 401K on a pre-tax basis for their normal contributions would need to be switched to a Roth/post-tax basis once they start making catch up contributions.