Changes to Catch-Up Contributions for 401(k) Plans Delayed to 2026

SECURE Act 2.0 provides that, beginning in 2024, employees with more than $145,000 in prior-year compensation may only make catch-up contributions on a Roth basis. Many stakeholders raised their concern with the Administration. For example, the American Benefits Council filed an active request, signed by over 100 industry groups, with the House Ways and Means Committee to delay the effective date of this provision because of systems challenges. The request sought a two-year delay of the Roth catch-up requirement, plus any additional time necessary to:

1. Give state and local governments the opportunity to consider and enact needed legislation and

2. Avoid requiring changes during the term of a collective bargaining agreement or other applicable binding agreements

Pentegra

Founded in 1943 by the Federal Home Loan Bank System, Pentegra has been an industry leader in providing full service retirement plan solutions to banks nationwide. Pentegra offers a full spectrum of qualified retirement programs. With every retirement solution, we bring the same focus—relieving banks of the fiduciary and administrative burdens that come with sponsoring a retirement plan. Today, Pentegra administers/manages over 50,000 retirement plans and more than $13 billion in retirement plan assets.

Changes to Catch-Up Contributions for 401(k) Plans Delayed to 2026

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