WASHINGTON, October 24, 2023 – The ERISA Industry Committee (ERIC) today submitted comments on Notice 2023-62, “Guidance on Section 603 of the SECURE 2.0 Act with Respect to Catch-Up Contributions,” released by the Internal Revenue Service (IRS) on August 25, 2023. In its letter, ERIC requested that the IRS provide additional relief and clarification so that plan sponsors and recordkeepers have the flexibility needed to efficiently comply with Section 603, which requires retirement plan catch-up contributions by certain employees to be made on an after-tax (“Roth”) basis.
“The changes to the catch-up rules in SECURE 2.0 were complex. ERIC and its member companies appreciated the two-year administrative transition provided by the IRS, but further guidance is necessary,” said Andy Banducci, senior vice president, retirement and compensation policy. “The details matter, and IRS can help plans provide retirement security by clarifying the rules and keeping compliance as simple as possible.”
ERIC member companies sponsor and maintain health and retirement plans for millions of workers, their families, and retirees. They supervise billions of dollars in retirement assets in accordance with their obligations under federal law.
Click HERE to read ERIC’s letter to the IRS.