Secured Retirement Incorporated

08/20/2025

Mandatory ROTH Catch-Up Contributions effective January 1, 2026
Starting January 1, 2026, a new IRS rule under the SECURE 2.0 Act will require certain retirement plan participants to make Roth (after-tax) catch-up contributions. Here's a breakdown of what this means and who it affects:

🔍 Who Is Affected?
• Participants aged 50 or older in 401(k), 403(b), or governmental 457(b) plans.
• Those who earned more than \$145,000 in F**A wages in the prior year (2025), indexed for inflation .

🧾 What’s Changing?
• Mandatory Roth Catch-Up Contributions: If you're a high-wage earner (above the threshold), any catch-up contributions you make must be Roth (after-tax), meaning:
o You pay taxes now.
o Your contributions grow tax-free.
o Withdrawals in retirement are tax-free .
• No Change to Contribution Limits: The catch-up contribution limit remains \$7,500 for 2025 (indexed annually). Ages 60–63 can contribute an additional \$3,750 .

⚠️ Important Considerations
• Plans Must Offer Roth Options: If your employer’s plan doesn’t support Roth contributions, high-wage earners won’t be able to make catch-up contributions at all .
• F**A vs. HCE Definition: The \$145,000 threshold is based on F**A wages, not the traditional Highly Compensated Employee (HCE) definition. This means some employees may unexpectedly fall into the Roth-only category .
• Impact on ADP Testing: Plans that fail nondiscrimination testing may no longer reclassify excess contributions as catch-up unless Roth is available .

✅ What You Should Do
• Employees:
o Review your 2025 income to see if you’ll exceed the threshold.
o Check if your plan offers Roth contributions.
o Consult a financial advisor to adjust your retirement strategy.
• Employers/Plan Sponsors:
o Ensure your plan allows Roth contributions.
o Update payroll and plan documents.
o Educate employees on the upcoming changes.

11/04/2024

https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000

IR-2024-285, Nov. 1, 2024 — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2025 has increased to $23,500, up from $23,000 for 2024.

11/02/2023

IRS Announces 2024 Retirement Plan Limits.
IRS Notice 2023-75 issued on November 1, 2023 has the new 2024 Retirement Plan limits. Please follow the link for viewing.

IR-2023-203, Nov. 1, 2023 — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2024 has increased to $23,000, up from $22,500 for 2023.

10/27/2023

Involuntary Cash-Out Provisions should be a part of your 401(k) Plan. Here's Why!

Ary Rosenbaum talks about the involuntary cash-out rule and why every 401(k) plan sponsors should have it.

10/17/2023

Celebrating National TPA Day!

06/26/2023

Some Sound Advice from an ERISA Fix-It Attorney.

As a plan sponsor, hiring one of the two biggest national payroll providers as your 401(k) plan’s third-party administrator (TPA) sounds like a great...

03/02/2023

The Federal Government is offering several tax credit incentives for businesses to implement New qualified retirement plans. Statutes in the Secure 2.0 legislation signed in December 2022 could reduce the costs of creating a new employer sponsored plan by up to 100%! Annual administrative costs may be covered for up to 3 Years! If you have questions, Secured Retirement Incorporated has the answers.
Let us explain the new opportunities for Employers.

10/26/2022

2023 Retirement Plan COLA Increases announced by IRS.
Follow link to read Notice 2022-55 Increased opportunities for qualified plan participants to maximize their retirement plan contributions.

IR-2022-188, October 21, 2022 — The IRS announced today that the amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. The IRS today also issued technical guidance regarding all of the cost of living adjustments

01/10/2022

Those California Employers who have received the intimidating notifications from calsavers, and would like clarification and an understanding of your alternative options, please contact our office.
Help is available.

10/15/2020

As we have concluded another season of Annual Administrations for Qualified Retirement Plans, it's time to look to the future.
Ary Rosenbaum has prepared another To Do List for 401(k) Plans 2020-2021 Edition.
Please take the time to read and apply the thoughts Ary has presented.

Being a retirement plan sponsor is a tremendous responsibility and the problem is that most plan sponsors don’t understand that. Plan sponsors often...