The AICPA has requested further guidance from the Treasury and the IRS regarding catch-up contributions designated as Roth contributions under Section 603 of the SECURE 2.0 Act.
In a letter dated Tuesday, July 1, the AICPA highlighted the need for clear regulations to ensure compliance with the Roth mandate, which affects employees eligible for catch-up contributions based on income thresholds.
“Post-SECURE 2.0, employers and plan administrators will need clear guidance to ensure compliance of the law regarding Roth-mandated catch-up contributions,” Kristin Esposito, director of Tax Policy & Advocacy at the AICPA, said.
The AICPA also recommended creating a safe harbor for using Form W-2 information to determine employee eligibility for the Roth mandate and asked for clarification on the treatment of disregarded entities in this context. Learn more.