Washington Perspective

Today, the Internal Revenue Service (IRS) issued Notice 2023-62 announcing a 2-year administrative transition period (delay) that extends until 2026 with respect to the new SECURE 2.0 requirement that any age based catch-up contributions made by participants earning over $145,000 must be designated as after-tax Roth contributions.

On July 14, 2023, the IRS released Notice 2023-54 (the “Notice”) to provide relief with respect to certain provisions of the RMD rules of Code section 401(a)(9) that Congress changed as part of the SECURE Act and the SECURE 2.0 Act.

A bipartisan coalition of congressional leaders say they intend to introduce new legislation clarifying several SECURE 2.0 provisions in a letter directed to the U.S. Department of the Treasury and the IRS.

The IRS on May 25, 2023 released guidance on expansion of the Employee Plans Compliance Resolution System (EPCRS) under Section 305 of SECURE 2.0.

As part of our ongoing efforts to help plan sponsors comply with the many provisions of the SECURE 2.0 Act, MissionSquare has been urging lawmakers to delay by at least two years a new requirement related to age-based “catch-up” retirement contributions.

Lower Cost Investment Options, Removal of Administrative Barriers and Saver’s Match Will Strengthen Public Service Employees’ Ability to Prepare for Retirement

The SECURE 2.0 Act of 2022 includes approximately 100 provisions designed to boost participation in workplace retirement plans and reduce the cost and administrative burdens of sponsoring them.

On September 8, the Senate Finance Committee released the long-awaited legislative text for The Enhancing American Retirement Now Act, dubbed the EARN Act, that unanimously passed out of the Committee on June 22.

On June 22, the Senate Finance Committee unanimously voted on a bipartisan bill, The Enhancing American Retirement Now Act, dubbed the EARN Act, that is the last Senate component for the broader SECURE Act 2.0 retirement security package.

On March 29, the House overwhelmingly approved the bipartisan Securing a Strong Retirement Act by a vote of 414 to 5.

We believe there is a reasonable chance for pension reform legislation this year.

The information below summarizes the 2022 IRS contribution limits for 457, 401(a), 401(k), and 403(b) plans as well as IRAs.

Despite the bipartisan commitment to retirement savings reforms, there is a very low expectation that any version of SECURE 2.0 legislation will pass into law in 2021. We are optimistic, however, that 2022 passage for retirement savings reforms remains a realistic possibility.

Senators Cardin and Portman reintroduce the Retirement Security and Savings Act

House Ways and Means Committee Passes SECURE 2.0 By Unanimous Voice Vote

$325 Billion in Direct Assistance for State and Local Governments

Learn about our advocacy efforts supporting local and state government financial relief.

We now have members of both the House and Senate advancing significant bipartisan pension reform.