Additionally, the IRS said anyone, regardless of income, who is 50 years or more of age can make catch-up contributions.
Included in Notice 2023-62PDF, the notice provides initial guidance for section 603 of the SECURE 2.0 Act, enacted in December 2022. Starting next year the new rule applies an employee who participates in a 401(k), 403(b) or governmental 457(b) plan and whose prior-year Social Security wages exceeded $145,000.
The IRS says this administrative transition period is designed “to facilitate an orderly transition for compliance with that requirement.”
The Treasury Department and the IRS plan to issue future guidance to help taxpayers, and the notice describes several positions that are expected to be included.