2025-17865RuleWallet

Catch-Up Cash for Boomers: Roth Rules Shake Up Retirement

Published Date: 9/16/2025

Rule

Summary

If you're 50 or older and saving for retirement, new rules from the SECURE 2.0 Act say some of your extra catch-up contributions must be Roth (after-tax) starting soon. These changes affect workers, employers, and plan managers, making sure everyone follows the updated tax and savings guidelines. Get ready to adjust how you save and when you pay taxes on those extra dollars!

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Catch-up Contributions Must Be Roth

If you have reached age 50, the final regulations implementing the SECURE 2.0 Act of 2022 require that some catch-up elective deferrals be designated as Roth contributions (after-tax). This rule applies to participants who have attained age 50 and changes the tax timing for those extra retirement savings.

Employers and Plan Administrators Must Comply

The final regulations affect employers who maintain retirement plans and plan administrators because plans that permit age-50 catch-up contributions must implement the requirement that certain catch-up amounts be designated Roth. Employers and plan administrators will need to update plan operations to follow the SECURE 2.0 Act changes.

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Key Dates

Published Date
Rule Effective
9/16/2025
11/17/2025

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Internal Revenue Service
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