Roth Catch-Up Rules Finalized: What Multiemployer Plans Need to Know
The US Department of the Treasury and the Internal Revenue Service have finalized regulations under the SECURE 2.0 Act that change how certain retirement plan participants may make catch-up contributions. Beginning in 2026, participants whose income meets certain thresholds and who are eligible to make catch-up contributions may, in many cases, only be permitted to do so on a Roth (after-tax) basis. While these rules apply to nearly all defined contribution retirement plans, they raise unique administrative and compliance challenges for multiemployer defined contribution plans, which are those defined contribution plans to which more than one employer is obligated to contribute and which are maintained pursuant to one or more collective bargaining agreements (CBAs) . Although the rules include temporary relief for collectively bargained plans, multiemployer plans should begin planning now. What the Final Regulations Require The Roth catch-up requirement applies only if...