401,000 additional plan contributions excluded due to error in SECURE 2.0 legislation

The intent of SECURE 2.0 was to require catch-up contributions to workplace pension plans to be Roth contributions, except for those earning less than $145,000, who would be allowed to make pre-tax contributions. By inadvertently removing a subclause in section 603 of the law, lawmakers have made it impossible for anyone to make any catch-up contributions, whether Roth or pre-tax, starting in 2024.

Mr. Hansen expects a legislative fix will be needed to ensure that individuals can make additional contributions next year.

“This is a technical amendment,” said Kent Mason, a partner at Davis & Harman, who noted that enacted legislation usually needs technical corrections.

“I think there were surprisingly few glitches in such a long run,” he said. “Hill is aware of this and I’m sure they will take care of it in a timely manner.”

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