Chapter 2
Mandatory Roth Catch-Ups: Starting January 1, 2026, the SECURE 2.0 Act mandates that catch-up contributions for high-income earners (over 150,000) in FICA wages in the prior year) to 401(k), 403(b), and 457(b) plans must be made on a Roth (after-tax) basis. This rule applies to employees aged 50 or older who meet the high-wage threshold.
"Super" Catch-Up Limits: Individuals aged 60–63 can contribute a higher catch-up amount of $11,250 to their 401(k) or 403(b), bringing their total potential contribution to $35,750.
Higher IRA Limits: The annual IRA contribution limit has increased to 7,500+$1,100 catch-up for those 50+, while workplace plan limits rose to 24,500.
Increased Qualified Charitable Distributions (QCDs): Retirees aged 70½+ can now transfer up to $111,000 directly from an IRA to a charity tax-free, which also counts toward their
Required Minimum Distribution (RMD).
Below provides the corresponding RMD age for account owners based on their dates of birth. Under SECURE 2.0, individuals born in 1959 appear to be subject to both the 73 and 75 ages. Final IRS regulations reserved a paragraph for proposed IRS regulations to clarify that those born in 1959 must begin taking RMDs after reaching age 73. The proposed regulation's comment period ends September 17, 2024. Both the final and proposed IRS regulations have an effective date of January 1, 2025:
Date of Birth RMD Age
Before July 1, 1949 70½
July 1, 1949, through December 31, 1950 72
January 1, 1951, through December 31, 1959 73
On or after January 1, 1960 75