Final regulations: Guidance on catch-up contributions to retirement plans
Final regulations reflect statutory changes made by the “SECURE 2.0 Act of 2022”
The U.S. Treasury Department and IRS today issued final regulations (T.D. 10033) providing guidance for retirement plans that permit participants who have attained age 50 to make additional elective deferrals that are catch-up contributions.
The final regulations reflect statutory changes made by the “SECURE 2.0 Act of 2022” (SECURE 2.0 Act), including the requirement that catch-up contributions made by certain eligible higher-income participants be designated as after-tax Roth contributions.
As explained in a related IRS release—IR-2025-91 (September 15, 2025)—while the final regulations generally follow the proposed regulations issued in January 2025 (read TaxNewsFlash), changes were made in response to comments received on the proposed regulations. For example, the final regulations permit a plan administrator to aggregate wages received by a participant in the prior year from certain separate common law employers in determining whether the participant is subject to the Roth catch-up requirement.
In addition, the final regulations include changes to certain provisions in the proposed regulations, including those relating to:
- Correction of a failure to comply with the Roth catch-up requirement
- Implementation of a deemed Roth election
- Plans that cover participants in Puerto Rico
The final regulations are effective on November 17, 2025, and generally apply with respect to contributions in tax years beginning after December 31, 2026.