Secure 2.0 transition period announced for 2024 and 2025!

[Silrossi46]

https://www.irs.gov/newsroom/irs-announces-administrative-transition-period-for-new-roth-catch-up-requirement-catch-up-contributions-still-permitted-after-2023.

The way I see this is that for earners earning above 145k for 2024 and 2025 we can still utilize catch-up provisions that are pre tax. The new law reformed the catch-up provisions for earners above 145k (gross?) and mandates that they be Roth thereby eliminating the catch up as a tax deferral for those years.   This is a huge win for me in the sense that I am still in year 3 of utilizing double catch-up provisions in my 457b plan and would like to take advantage of those still being tax deferred.  They made this transition period I presume for plan administrators to catch up to the new law that was signed into place in late 2022.

Since I plan to be retired from my position at my current employer late 2025 the timing is right on for me.  Hope this information is helpful to any others that may not know. 

[ATtiny85]

Yeah, I saw this, but thanks for posting. I also am glad to get to continue deferring the match a couple more years. It might get me to my final year at work. Our marginal rate is pretty high, so kicking the tax can down the road is appealing.

[Agatha Thrifty]

I too have appreciated the recent clarifications.  I make less than $145k, but for quite some time there was almost no information at all on the transition period for post-2.0 catch-up contributions.  Mainstream media wasn't  covering it, because the average Joe doesn't save enough for retirement to worry about it, and FIRE forums weren't covering it either because they trend young and people there aren't old enough to take advantage of them. GenX, left out of the conversation once again.