The Secure 2.0 Act of 2022 extended legislation regarding retirement plan requirements. This article will go over these updates to the Fuse system.
Following the Secure 2.0 Act of 2022, signed into law on December 29, 2022, extensive legislation that expands on retirement plan requirements has been released. We will support many of the Secure 2.0 Act provisions in the Fuse system, starting with provisions that are effective in 2024. Our top priority is the provision requiring certain catch-up contributions to be treated as Roth contributions.
Statutory Background: Catch-up contributions must be treated as Roth contributions if made by employees whose wages for the preceding calendar year from the same employer sponsoring the plan exceed $145,000, annually adjusted for inflation.
The National Payroll Reporting Consortium (NPRC) has issued a letter to the IRS urging for a delay to the provisions that will become effective in 2024. If the provisions change or impact our implementation of the new features, we will let you know more as soon as we are made aware.
Updates from 8/25/2023
The IRS announced that the administrative transition period for new Roth catch-up requirements has been extended until 2026. Further details can be found on the following websites.
Updates for 2024
Updates have been made in the Fuse system to include additional deduction codes and changes to retirement plan profiles. Please review the following article for this setup: