IRS Issues Proposed Rules for Retirement Plan Automatic Enrollment and Catch-Up Contributions; Comments Due April 7

The Department of the Treasury (Treasury) and Internal Revenue Service (IRS) released two proposed rules for retirement plans based on requirements of the SECURE 2.0 Act of 2022 (SECURE Act): catch-up contributions for persons aged 50 and older and automatic enrollment requirements. Both affect participants in, beneficiaries of, employers maintaining, and administrators of certain retirement plans.

Catch-Up Contributions

• The guidance on catch-up contributions is for retirement plans that permit participants who have attained age 50 to make additional elective deferrals as catch-up contributions designated as after-tax Roth contributions. This rule affects contributions made by certain higher-income participants and those participants between the ages of 60-63 and employees in newly established SIMPLE plans.
• Comments are due April 7, 2025.
• A public hearing is scheduled for April 7, 2025 at 10am ET. Requests to speak are due March 14, 2025.

Automatic Enrollment

• The automatic enrollment requirements apply to certain retirement plans that include cash or deferred arrangements or annuity contracts purchased under salary reduction agreements and other retirement plans that include eligible automatic contribution arrangements.
• Comments are due March 17, 2025.
• A public hearing is scheduled for April 8, 2025 at 10am ET. Requests to speak are due March 17, 2025.

News release