SECURE 2.0 expands the horizons of Roth savings and creates new restrictions for high earners.
Earnings Test for Catch-Up Contributions: SECURE 2.0 brings a significant shift in the retirement savings landscape. All catch-up contributions for employees earning over $145,000 (indexed for inflation) must now flow into the Roth side of their plan.
Roth Options for Small Business Plans: Starting in 2023, SIMPLE and SEP IRAs now come in both traditional and Roth versions, providing enhanced tax planning flexibility.
Matching with Roth Dollars: In 2024, larger employers can now match 401(k) and 403(b) with Roth dollars, providing employees with an additional layer of tax-advantaged retirement savings.
