On September 16, the Internal Revenue Service (IRS) and Treasury released final regulations implementing the SECURE 2.0 new rules for catch-up contributions to retirement savings plans. The final regulations (TD 10033/RIN 1545-BR11) implement the SECURE 2.0 rule that requires high-paid retirement savers to make their catch-up contributions on a Roth basis.

Generally, the SECURE 2.0 rule requires that as of 2027, catch-up contributions made by those age 50 or older who earn more than $145,000 must be after-tax (with tax-free distributions)—i.e., the Roth rule. The final regulations mostly follow the regulations as proposed, but the final version contains certain clarifications. They include two key clarifications:

1. Prior year FICA wages will determine whether a taxpayer’s income exceeds $145,000, and
2. A plan must include a Roth contribution option for an eligible plan participant who earns over $145,000 to be able to make a catch-up contribution. If the plan does not contain a Roth contribution option, the taxpayer, even if otherwise eligible, would not be permitted to make a catch-up contribution.

The final regulations are effective as of November 17, 2025.

Prospects: The final regulations state that plans may implement Roth catch-up contributions before 2027, provided they use a reasonable, good faith interpretation of statutory provisions. And plans may be amended to add the Roth contribution option if they do not already have it.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org