Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 2645 

Workers’ Compensation Act: Civil 

Money Penalties Procedures, 88 FR 

62480 (Sept. 12, 2023). This rule would 

establish new procedures for assessing 

and adjudicating penalties under the 

LHWCA. See 33 U.S.C. 901–50. The rule 

also would set forth the procedures to 

contest OWCP’s penalty determinations. 

The comment period for this notice of 

proposed rulemaking expired on 

November 13, 2023. 

Summary of Comments 

The Department received six 

comments on the proposed regulations. 

The commenters represented a number 

of stakeholders from the private sector, 

including group self-insurance entities, 

industry associations, and a business 

advocacy organization. 

Rationale for Withdrawal 

OWCP has considered the detailed 

feedback, analysis, and dialogue that the 

publication of the NPRM produced. 

OWCP continues to believe that there is 

a need for a more defined and 

transparent process for imposing and 

adjudicating penalties. 

Given the range of feedback received 

and the need for additional examination 

and input, however, OWCP believes 

that, before proceeding with this 

rulemaking, it would benefit from more 

outreach and dialogue with interested 

parties and the regulated community, 

which it cannot complete in the near 

future with its limited time and 

resources. In addition, many aspects of 

the proposed rule and the penalty 

process are closely connected to 

OWCP’s information technology 

modernization project and cannot move 

forward until that project is completed. 

Therefore, OWCP is withdrawing this 

proposed rule. 

Conclusion 

By withdrawing the proposed rule, 

OWCP is eliminating the pending nature 

of this rulemaking. OWCP intends to 

engage with all interested parties to 

discuss and consider future revision to 

the penalties procedures, as well as 

impacts on the stakeholders. If OWCP 

decides to establish new procedures for 

the imposition and adjudication of civil 

money penalties prescribed by the 

LHWCA, it will issue a new NPRM in 

the Federal Register. 

Accordingly, the NPRM published in 

the Federal Register on September 12, 

2023 at 88 FR 62480, is withdrawn. 

Christopher Godfrey, 

Director, Office of Workers’ Compensation 

Programs. 

[FR Doc. 2025–00376 Filed 1–10–25; 8:45 am] 

BILLING CODE 4510–CR–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–101268–24] 

RIN 1545–BR11 

Catch-Up Contributions 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of public hearing. 

SUMMARY: This document sets forth 

proposed regulations that would 

provide guidance for retirement plans 

that permit participants who have 

attained age 50 to make additional 

elective deferrals that are catch-up 

contributions. The proposed regulations 

reflect statutory changes made by the 

SECURE 2.0 Act of 2022, including the 

requirement that catch-up contributions 

made by certain catch-up eligible 

participants must be designated Roth 

contributions. The proposed regulations 

would affect participants in, 

beneficiaries of, employers maintaining, 

and administrators of certain retirement 

plans. This document also provides 

notice of a public hearing. 

DATES: Written or electronic comments 

must be received by March 14, 2025. A 

public hearing on this proposed 

regulation has been scheduled for April 

7, 2025, at 10 a.m. ET. Requests to speak 

and outlines of topics to be discussed at 

the public hearing must be received by 

March 14, 2025. If no outlines are 

received by March 14, 2025, the public 

hearing will be cancelled. Requests to 

attend the public hearing must be 

received by 5 p.m. on April 3, 2025. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically via the Federal 

eRulemaking Portal at 

www.regulations.gov (indicate IRS and 

REG–101268–24) by following the 

online instructions for submitting 

comments. Requests for a public hearing 

must be submitted as prescribed in the 

‘‘Comments and Public Hearing’’ 

section. Once submitted to the Federal 

eRulemaking Portal, comments cannot 

be edited or withdrawn. The 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

for public availability any comment 

submitted electronically or on paper to 

its public docket on 

www.regulations.gov. Send paper 

submissions to: CC:PA:01:PR (REG– 

101268–24), Room 5203, Internal 

Revenue Service, P.O. Box 7604, Ben 

Franklin Station, Washington, DC 

20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

call Jessica S. Weinberger at (202) 317– 

6349 or Jason E. Levine at (202) 317– 

4117; concerning submission of 

comments, the hearing, and the access 

code to attend the hearing by telephone, 

call the Publications and Regulations 

Section at (202) 317–6901 (not toll-free 

numbers) or email publichearings@

irs.gov (preferred). 

SUPPLEMENTARY INFORMATION: 

Authority 

This notice of proposed rulemaking 

sets forth proposed amendments to the 

Income Tax Regulations (26 CFR part 1) 

under sections 401(k), 403(b), and 

414(v) of the Internal Revenue Code 

(Code) relating to catch-up 

contributions. These proposed 

regulations are issued by the Secretary 

of the Treasury or the Secretary’s 

delegate (Secretary) under the express 

delegations of authority in sections 

401(m)(9), 414(v)(7)(D), and 7805(a) of 

the Code. 

Section 401(m)(9) provides, in part, 

that ‘‘[t]he Secretary shall prescribe 

such regulations as may be necessary to 

carry out the purposes of this subsection 

and subsection (k).’’ Section 

414(v)(7)(D) provides a specific 

delegation of authority with respect to 

the requirements of section 414(v)(7)(A), 

stating, ‘‘[t]he Secretary may provide by 

regulations that an eligible participant 

may elect to change the participant’s 

election to make additional elective 

deferrals if the participant’s 

compensation is determined to exceed 

the limitation under subparagraph (A) 

after the election is made.’’ Section 

7805(a) provides that ‘‘the Secretary 

shall prescribe all needful rules and 

regulations for the enforcement of [the 

Code], including all rules and 

regulations as may be necessary by 

reason of any alteration of law in 

relation to internal revenue.’’ 

Background 

This notice of proposed rulemaking 

sets forth proposed amendments to the 

Income Tax Regulations under section 

414(v) of the Code. Section 414(v) 

permits a plan to allow catch-up eligible 

participants to make additional elective 

deferrals that are catch-up contributions 

and sets forth requirements relating to 

those contributions. These proposed 

regulations would amend the 

regulations under section 414(v) to 

reflect changes to the catch-up 

contribution requirements for certain 

catch-up eligible participants pursuant 


ddrumheller on DSK120RN23PROD with PROPOSALS1
2646 Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 

1Section 414(v)(6)(C) provides that section 414(v) 

does not apply to a participant in an eligible 

governmental 457(b) plan for any year for which a 

higher limitation applies to the participant under 

section 457(b)(3). 

2The annual limit on salary reduction 

contributions or elective contributions is lower for 

SIMPLE plans than for other types of plans. 

However, SIMPLE plans are not subject to 

nondiscrimination testing, and the employer must 

make certain contributions. 

3An eligible employer is described in section 

408(p)(2)(E)(iv) if, during the three-taxable-year 

period preceding the first year that the employer 

to sections 109, 117, and 603 of Division 

T of the Consolidated Appropriations 

Act, 2023, Public Law 117–328, 136 

Stat. 4459 (2022), known as the SECURE 

2.0 Act of 2022 (SECURE 2.0 Act). 

This document also proposes 

conforming amendments to the 

regulations under sections 401(k) and 

403(b) of the Code that reflect section 

603 of the SECURE 2.0 Act. 

I. Statutory and Regulatory Framework 

Section 414(v)(1) of the Code provides 

that an applicable employer plan will 

not be treated as failing to meet any 

requirement of the Code solely because 

it permits an eligible participant to 

make additional elective deferrals (as 

defined in section 414(v)(6)(B)) in any 

plan year. ‘‘Applicable employer plan’’ 

is defined in section 414(v)(6)(A) to 

mean a qualified plan under section 

401(a) (qualified plan), a plan under 

which amounts are contributed by an 

individual’s employer for an annuity 

contract described in section 403(b) 

(section 403(b) plan), an eligible 

deferred compensation plan under 

section 457 of an eligible employer 

described in section 457(e)(1)(A) 

(eligible governmental 457(b) plan),1 an 

arrangement meeting the requirements 

of section 408(k) (SEP arrangement), or 

an arrangement meeting the 

requirements of section 408(p) (SIMPLE 

IRA plan). Under section 414(v)(5), an 

eligible participant is a participant who 

is generally eligible to make elective 

deferrals under an applicable employer 

plan and who would attain age 50 by 

the end of the taxable year, with respect 

to whom no further elective deferrals 

may (without regard to section 414(v)) 

be made to the plan for the plan year (or 

other applicable year) by reason of a 

limitation or restriction listed in section 

414(v)(3) or a comparable limitation or 

restriction included in the terms of the 

plan. 

Under section 414(v)(2)(A), the 

amount of additional elective deferrals 

that a plan may permit a participant to 

make pursuant to section 414(v)(1) for a 

taxable year is limited to the lesser of: 

(1) the applicable dollar amount under 

section 414(v)(2)(B) (referred to as the 

applicable dollar catch-up limit), and (2) 

the excess (if any) of the participant’s 

compensation (as defined in section 

415(c)(3)) for the year over any other 

elective deferrals of the participant for 

such year that are made without regard 

to section 414(v). Section 414(v)(2)(B)(i) 

provides the applicable dollar catch-up 

limit for an applicable employer plan 

other than a plan described in section 

401(k)(11) (SIMPLE 401(k) plan) or a 

SIMPLE IRA plan. Section 

414(v)(2)(B)(ii) provides the applicable 

dollar catch-up limit for a SIMPLE 

401(k) plan or a SIMPLE IRA plan 

(collectively referred to as SIMPLE 

plans). Section 414(v)(2)(C) provides 

that the applicable dollar catch-up 

limits under section 414(v)(2)(B)(i) and 

(ii) are subject to annual adjustment 

based on changes in the cost of living. 

Section 414(v)(2)(D) provides that, for 

purposes of section 414(v)(2), all 

applicable employer plans, other than 

eligible governmental 457(b) plans, that 

are maintained by the same employer 

(as determined under section 414(b), (c), 

(m), or (o)) are treated as a single plan, 

and all eligible governmental 457(b) 

plans that are maintained by the same 

employer are treated as a single plan. 

Under section 414(v)(3)(A)(i), a catchup contribution is not, with respect to 

the year in which the contribution is 

made, subject to certain otherwise 

applicable limitations, including those 

contained in section 401(a)(30) (limiting 

a participant’s elective deferrals during 

a calendar year to the amount permitted 

under section 402(g)), section 403(b) 

(including the requirement under 

section 403(b)(1)(E) that a contract 

purchased under a salary reduction 

agreement must meet the requirements 

of section 401(a)(30)), and section 

457(b)(2) (limiting a participant’s 

elective deferrals for a taxable year, 

determined without regard to any 

increase to the limitation under section 

457(b)(3), to the applicable dollar 

amount in section 457(e)(15)). Under 

section 414(v)(3)(B), catch-up 

contributions are excluded from 

consideration for purposes of certain 

nondiscrimination tests. 

Section 414(v)(4) provides that an 

applicable employer plan is treated as 

failing to meet the nondiscrimination 

requirements under section 401(a)(4) 

with respect to benefits, rights, and 

features unless the plan allows all catchup eligible participants to make the 

same election with respect to catch-up 

contributions. For purposes of section 

414(v)(4), all plans maintained by 

employers who are treated as a single 

employer under section 414(b), (c), (m), 

or (o) are treated as one plan (with the 

exception of a plan described in section 

410(b)(6)(C)(i) for the duration of the 

transition period described in section 

410(b)(6)(C)(ii) with respect to that 

plan). 

Section 414(v) was added to the Code 

by section 631 of the Economic Growth 

and Tax Relief Reconciliation Act of 

2001, Public Law 107–16, 115 Stat. 38, 

and the Treasury Department and the 

IRS issued comprehensive regulations 

under section 414(v) in 2003 (TD 9072, 

68 FR 40510). Subsequently, provisions 

relating to catch-up contributions under 

section 414(v) were incorporated into 

regulations under sections 401(k), 

403(b), and 457(b). 

II. SECURE 2.0 Act Changes to Section 

414(v) 

A. Section 109 of the SECURE 2.0 Act 

For a taxable year beginning after 

December 31, 2024, section 109 of the 

SECURE 2.0 Act amends section 

414(v)(2) of the Code to increase the 

applicable dollar catch-up limit under 

section 414(v)(2)(B)(i) and (ii) in the 

case of a catch-up eligible participant 

who attains age 60, 61, 62, or 63 during 

the taxable year. For such a participant 

in an applicable employer plan other 

than a SIMPLE plan, the increased 

applicable dollar catch-up limit is 150 

percent of the otherwise applicable 

dollar catch-up limit under section 

414(v)(2)(B)(i) in effect for 2024. For 

such a participant in a SIMPLE plan, the 

increased applicable dollar catch-up 

limit is 150 percent of the otherwise 

applicable dollar catch-up limit under 

section 414(v)(2)(B)(ii) in effect for 2025. 

In either case, for a year beginning after 

December 31, 2025, the increased 

applicable dollar catch-up limit is 

subject to adjustment to reflect changes 

in the cost of living, in accordance with 

the last sentence of section 414(v)(2)(C). 

B. Section 117 of the SECURE 2.0 Act 

A SIMPLE plan is an alternative plan 

design under which employees of an 

eligible employer as defined in section 

408(p)(2)(C)(i) (that is, generally, an 

employer that had no more than 100 

employees who received at least $5,000 

of compensation from the employer for 

the preceding calendar year) are 

permitted to elect to have salary 

reduction contributions (or elective 

contributions, in the case of a SIMPLE 

401(k) plan) made on their behalf.2

Among other things, section 117 of the 

SECURE 2.0 Act amends section 

414(v)(2) of the Code to increase the 

applicable dollar catch-up limit under 

section 414(v)(2)(B)(ii) for SIMPLE plans 

sponsored by certain eligible employers 

who are described in section 

408(p)(2)(E)(iv).3 The increased 


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Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 2647 

maintained the SIMPLE plan, the employer 

(including any member of the employer’s controlled 

group or any predecessor of the employer or 

member of its controlled group) has not established 

or maintained a qualified plan, a section 403(a) 

annuity plan, or a section 403(b) plan under which 

contributions were made or benefits were accrued 

for substantially the same employees as are eligible 

to participate in the SIMPLE plan. See Q&A E–1 in 

Notice 2024–2, 2024–2 IRB 316. 

applicable dollar catch-up limit is 

available automatically to a SIMPLE 

plan sponsored by an eligible employer 

described in section 408(p)(2)(E)(iv) that 

had no more than 25 employees who 

received at least $5,000 of compensation 

from the employer for the preceding 

calendar year. Other eligible employers 

described in section 408(p)(2)(E)(iv) 

may make an election for the increased 

applicable dollar catch-up limit to apply 

and, if the election is made, the 

employer must make additional 

matching or nonelective contributions. 

The increased applicable dollar catchup limit, which applies to taxable years 

beginning after December 31, 2023, is 

110 percent of the otherwise applicable 

dollar catch-up limit under section 

414(v)(2)(B)(ii) for calendar year 2024. 

For a year beginning after December 31, 

2024, the increased applicable dollar 

catch-up limit is subject to adjustment 

to reflect changes in the cost of living, 

in accordance with section 

414(v)(2)(C)(ii). 

C. Section 603 of the SECURE 2.0 Act 

Section 603(a) of the SECURE 2.0 Act 

amends section 414(v) of the Code to 

add section 414(v)(7). Section 

414(v)(7)(A) sets forth the requirement 

that catch-up contributions made by 

certain catch-up eligible participants 

must be designated Roth contributions 

(the Roth catch-up requirement). 

Specifically, under section 414(v)(7)(A), 

in the case of a catch-up eligible 

participant whose wages as defined in 

section 3121(a) (that is, wages for 

purposes of the Federal Insurance 

Contributions Act (FICA), codified at 

subtitle C, chapter 21 of the Code, or 

FICA wages) for the preceding calendar 

year from the employer sponsoring the 

plan exceeded $145,000, section 

414(v)(1) applies only if any catch-up 

contributions made by the participant 

are designated Roth contributions (as 

defined in section 402A(c)(1)). 

Section 414(v)(7)(B) provides that, in 

the case of an applicable employer plan 

with respect to which section 

414(v)(7)(A) applies to any participant 

for a plan year, section 414(v)(1) does 

not apply to the plan unless the plan 

provides that any catch-up eligible 

participant may make catch-up 

contributions as designated Roth 

contributions. 

Section 414(v)(7)(C) provides that 

section 414(v)(7)(A) does not apply to 

SEP arrangements or SIMPLE IRA plans. 

Under section 414(v)(7)(D), regulations 

may provide that a catch-up eligible 

participant may elect to change the 

participant’s election to make catch-up 

contributions if the participant’s 

compensation is determined to exceed 

the wage limitation under section 

414(v)(7)(A) (Roth catch-up wage 

threshold) after the election is made. 

Under section 414(v)(7)(E), for taxable 

years beginning after December 31, 

2024, the Roth catch-up wage threshold 

is adjusted for changes in the cost of 

living. 

Section 603(b) of the SECURE 2.0 Act 

includes conforming amendments with 

respect to section 603(a). Section 

603(b)(1) of the SECURE 2.0 Act strikes 

section 402(g)(1)(C) of the Code. Prior to 

its elimination, section 402(g)(1)(C) 

provided that a catch-up eligible 

participant’s gross income did not 

include elective deferrals in excess of 

the applicable dollar amount under 

section 402(g)(1)(B) to the extent that 

the amount of those elective deferrals 

did not exceed the applicable dollar 

catch-up limit under section 

414(v)(2)(B)(i) for the taxable year 

(without regard to the treatment of the 

elective deferrals by an applicable 

employer plan under section 414(v)). 

Section 603(b)(2) of the SECURE 2.0 

Act amends section 457(e)(18)(A)(ii) of 

the Code and, pursuant to this 

amendment, a portion of the catch-up 

contributions made to an eligible 

governmental 457(b) plan in accordance 

with section 457(b)(3) and (e)(18) by a 

catch-up eligible individual for the last 

three taxable years ending before the 

individual attains normal retirement age 

must be designated Roth contributions. 

The portion that is subject to this Roth 

requirement is the amount by which the 

applicable dollar catch-up limit under 

section 414(v)(2)(B)(i) exceeds the 

maximum permitted contribution set 

forth in section 457(b)(3) (determined 

without regard to section 457(e)(18)). 

Under section 603(c) of the SECURE 

2.0 Act, the amendments made by 

section 603 of the SECURE 2.0 Act 

apply to taxable years beginning after 

December 31, 2023. 

III. Notice 2023–62 

In August 2023, the Treasury 

Department and the IRS issued Notice 

2023–62, 2023–37 IRB 817. Notice 

2023–62 clarifies that, despite the 

elimination of section 402(g)(1)(C) of the 

Code under section 603(b)(1) of the 

SECURE 2.0 Act, applicable employer 

plans may, for taxable years beginning 

after December 31, 2023, continue to 

permit catch-up eligible participants to 

make elective deferrals that exceed the 

applicable dollar amount under section 

402(g)(1)(B) of the Code (or deferrals 

that exceed the applicable dollar 

amount under section 457(e)(15)) if 

those contributions in excess of the 

applicable dollar amount satisfy the 

requirements for catch-up contributions 

under section 414(v). In addition, 

pursuant to Notice 2023–62, the first 

two taxable years beginning after 

December 31, 2023, are regarded as an 

administrative transition period with 

respect to the Roth catch-up 

requirement. During the administrative 

transition period, catch-up 

contributions made by a participant 

who is subject to the Roth catch-up 

requirement will be treated as satisfying 

the requirements of section 414(v)(7)(A), 

even if the contributions are not 

designated Roth contributions. 

Notice 2023–62 also summarizes 

anticipated guidance from the Treasury 

Department and the IRS with respect to 

the implementation of section 603 of the 

SECURE 2.0 Act as follows: (1) the Roth 

catch-up requirement would not apply 

in the case of a catch-up eligible 

participant who did not have FICA 

wages for the preceding calendar year 

from the employer sponsoring the plan; 

(2) in the case of a catch-up eligible 

participant who is subject to the Roth 

catch-up requirement, a plan 

administrator and an employer would 

be permitted to treat an election by the 

participant to make catch-up 

contributions on a pre-tax basis as an 

election by the participant to make 

catch-up contributions that are 

designated Roth contributions; and (3) a 

catch-up eligible participant’s FICA 

wages for the preceding calendar year 

from one participating employer in an 

applicable employer plan that is 

maintained by more than one employer 

(including a multiemployer plan) would 

not be aggregated with the participant’s 

FICA wages for the preceding calendar 

year from another participating 

employer in the plan for purposes of 

determining whether the participant’s 

FICA wages for that year exceeded the 

Roth catch-up wage threshold. The 

notice requested comments with respect 

to the anticipated guidance summarized 

in the notice, additional matters under 

consideration relating to a plan without 

a qualified Roth contribution program, 

and, more generally, the provisions of 

section 603 of the SECURE 2.0 Act. 


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4Under a spillover design, a participant who 

would attain age 50 by the end of the taxable year 

makes one election with respect to elective deferrals 

for a plan year and, after the participant’s elective 

deferrals reach a Code or plan limitation on elective 

deferrals that are not catch-up contributions, 

additional elective deferrals automatically begin 

counting toward the applicable dollar catch-up 

limit under section 414(v)(2). 

5This Notice of Proposed Rulemaking (NPRM) 

does not propose to incorporate proposed 

§ 1.401(k)–1(f)(5)(iii) and (iv) into the regulations 

relating to eligible governmental 457(b) plans 

because those regulations do not currently provide 

for the inclusion of a qualified Roth contribution 

program in an eligible governmental 457(b) plan. 

On June 22, 2016, proposed regulations relating to 

the inclusion of a qualified Roth contribution 

program in an eligible governmental 457(b) plan 

were published in the Federal Register (81 FR 

40548) and those proposed regulations have not 

been finalized. 

Explanation of Provisions 

I. Amendments to Regulations Under 

Sections 401(k) and 403(b)—Deemed 

Roth Catch-Up Election 

Section 414(v)(7)(A) of the Code 

provides that in the case of a participant 

who is subject to the Roth catch-up 

requirement, section 414(v)(1) applies 

only if any catch-up contributions made 

by the participant are designated Roth 

contributions made pursuant to the 

participant’s election. Notice 2023–62 

requested comments on anticipated 

future guidance expected to permit plan 

administrators and employers to treat an 

election by a participant to make catchup contributions on a pre-tax basis as an 

election to make catch-up contributions 

as designated Roth contributions if the 

participant is subject to the Roth catchup requirement. All comments received 

were in favor of this approach. 

Accordingly, proposed § 1.401(k)– 

1(f)(5)(iii) would permit a plan to 

provide, for taxable years beginning 

after December 31, 2023, that a 

participant who is subject to the Roth 

catch-up requirement is deemed to have 

irrevocably designated any catch-up 

contributions as designated Roth 

contributions in accordance with the 

requirements of § 1.401(k)–1(f)(1)(i). 

Under the proposed regulation, a plan 

that provides for such a deemed Roth 

catch-up election would be required, as 

is the case for any other designated Roth 

contribution, to: (1) treat catch-up 

contributions subject to the deemed 

Roth catch-up election as not excludible 

from the participant’s gross income, and 

(2) maintain the catch-up contributions 

in a designated Roth account. A plan 

would be permitted to provide for a 

deemed Roth catch-up election without 

regard to whether it requires separate 

elections for elective deferrals that are 

not catch-up contributions and for 

additional elective deferrals that are 

catch-up contributions or uses a 

spillover design.4 However, in 

accordance with section 414(v)(7)(D), 

the application of a deemed Roth catchup election to a participant would be 

conditioned, under proposed § 1.401(k)– 

1(f)(5)(iv), on the participant having an 

effective opportunity (determined based 

on all of the relevant facts and 

circumstances, in accordance with 

§ 1.401(k)–1(e)(2)(ii)) to make a new 

election that is different than the 

deemed election. For example, under 

the proposed regulation, a plan would 

need to permit a participant subject to 

a deemed Roth catch-up election to elect 

to cease making additional elective 

deferrals. 

The proposed amendments to 

§ 1.403(b)–3(c)(1) would incorporate 

proposed § 1.401(k)–1(f)(5)(iii) and (iv), 

so that a section 403(b) plan would be 

permitted to include a deemed Roth 

catch-up election, subject to the 

requirement to provide a participant 

subject to a deemed catch-up election 

with the effective opportunity to make 

a different election. This amendment 

would be part of a broader incorporation 

of all of § 1.401(k)–1(f)(3) and (5) into 

the rules relating to designated Roth 

contributions under section 403(b) 

plans; the incorporation of § 1.401(k)– 

1(f)(3), (f)(5)(i), and (f)(5)(ii) is not a 

substantive legal change, as these 

provisions were previously applicable 

with respect to section 403(b) plans.5

II. Proposed Revisions to § 1.414(v)–1 

A. Overview 

The proposed revisions and additions 

to § 1.414(v)–1 would mainly reflect 

changes made by sections 109 and 117 

of the SECURE 2.0 Act. In particular, the 

revisions to § 1.414(v)–1 would: (1) 

reflect the increased applicable dollar 

catch-up limits permitted under 

sections 109 and 117 of the SECURE 2.0 

Act (along with updated cost-of-living 

adjustments), and (2) clarify the 

application of the universal availability 

requirement under Code section 

414(v)(4) to an applicable employer plan 

that permits certain catch-up eligible 

participants to make catch-up 

contributions in an amount equal to the 

increased applicable dollar catch-up 

limit for participants attaining age 60 

through 63. In addition, a provision 

would be added to the general rules 

under § 1.414(v)–1(a) indicating that the 

rules relating to the Roth catch-up 

requirement under section 414(v)(7) can 

be found in proposed § 1.414(v)–2. 

B. Increased Applicable Dollar Catch-Up 

Limit During the Year of Attainment of 

Age 60 Through 63 Under Section 109 

of the SECURE 2.0 Act 

Current § 1.414(v)–1(c)(2)(i) sets forth 

the applicable dollar catch-up limit that 

applies to all catch-up eligible 

participants in an applicable employer 

plan that is not a SIMPLE plan. The 

proposed regulations would retain that 

rule (other than the provisions 

applicable to taxable years beginning in 

calendar years before 2006) and would 

note the existence of a higher limit for 

individuals attaining age 60 through 63 

set forth in proposed § 1.414(v)– 

1(c)(2)(i)(B). Specifically, proposed 

§ 1.414(v)–1(c)(2)(i)(B) sets forth the 

increased applicable dollar catch-up 

limit that would apply for a taxable year 

beginning after 2024 with respect to a 

catch-up eligible participant in an 

applicable employer plan other than a 

SIMPLE plan who would attain age 60, 

61, 62, or 63 on the participant’s 

birthday occurring during the taxable 

year. The increased applicable dollar 

catch-up limit under proposed 

§ 1.414(v)–1(c)(2)(i)(B) is 150 percent of 

the applicable dollar catch-up limit that 

applies during a taxable year beginning 

in 2024 (that is, $11,250, which is 150 

percent of $7,500), adjusted for changes 

in the cost of living. 

Similarly, current § 1.414(v)– 

1(c)(2)(ii) sets forth the applicable dollar 

catch-up limit that applies to all catchup eligible participants in a SIMPLE 

plan. The proposed regulations would 

retain those provisions (other than the 

provisions applicable to taxable years 

beginning in calendar years before 2006) 

and would note the existence of a higher 

limit for individuals attaining age 60 

through 63 set forth in proposed 

§ 1.414(v)–1(c)(2)(ii)(B) (and a higher 

limit for participants in certain SIMPLE 

plans set forth in proposed § 1.414(v)– 

1(c)(2)(ii)(C)). Specifically, proposed 

§ 1.414(v)–1(c)(2)(ii)(B) sets forth the 

increased applicable dollar catch-up 

limit that would apply for a taxable year 

beginning after 2024, with respect to a 

catch-up eligible participant in a 

SIMPLE plan who would attain age 60, 

61, 62, or 63 on the participant’s 

birthday occurring during the taxable 

year. The increased applicable dollar 

catch-up limit under proposed 

§ 1.414(v)–1(c)(2)(ii)(B) is 150 percent of 

the applicable dollar catch-up limit that 

applies during a taxable year beginning 

in 2025 (that is, $5,250, which is 150 

percent of $3,500), adjusted for changes 

in the cost of living. 

Current § 1.414(v)–1(c)(2)(iii) provides 

for cost-of-living adjustments to the 

applicable dollar catch-up limits that 


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6The higher applicable dollar catch-up limit for 

participants attaining age 60 through 63 may, but 

is not required to be, included in an applicable 

employer plan. Thus, an applicable employer plan 

may also be designed to limit the catch-up 

contributions for those participants to the same 

applicable dollar catch-up limit that applies for all 

other catch-up eligible participants. 

7For taxable years beginning in 2024, the limit on 

catch-up contributions that can be made by a 

participant who is eligible to make catch-up 

contributions under the Puerto Rico Code is $1,500. 

8The Roth catch-up wage threshold of $145,000 

would be applied to a catch-up eligible participant’s 

2023 FICA wages to determine whether the Roth 

catch-up requirement applies to the participant’s 

catch-up contributions made for 2024. In 

accordance with Notice 2024–80, 2024–47 IRB 

1120, the Roth catch-up wage threshold that would 

be applied to a catch-up eligible participant’s 2024 

FICA wages to determine whether the Roth catchup requirement applies to the participant’s catchup contributions made for 2025 remains $145,000. 

apply under current § 1.414(v)–1(c)(2)(i) 

and (ii). The proposed regulations 

would retain that provision and would 

also set forth the cost-of-living 

adjustments to the increased applicable 

dollar catch-up limits for individuals 

attaining age 60 through 63. 

C. Increased Applicable Dollar Catch-Up 

Limit for Certain SIMPLE Plans Under 

Section 117 of the SECURE 2.0 Act 

In accordance with section 117 of the 

SECURE 2.0 Act, proposed § 1.414(v)– 

1(c)(2)(ii)(C) would set forth an 

increased applicable dollar catch-up 

limit that would apply for a taxable year 

beginning in 2024 under a SIMPLE plan 

that is sponsored by an eligible 

employer described in Code section 

408(p)(2)(E)(iv) and for which the 

increased applicable dollar catch-up 

limit under section 414(v)(2)(B)(iii) 

applies automatically or by election. 

The increased applicable dollar catchup limit is 110 percent of the applicable 

dollar catch-up limit that applies during 

a taxable year beginning in 2024 (that is, 

$3,850, which is 110 percent of $3,500), 

adjusted for changes in the cost of 

living. For taxable years beginning after 

2024, proposed § 1.414(v)–1(c)(2)(iii)(C) 

would set forth the cost-of-living 

adjustments to this increased applicable 

dollar catch-up limit. 

D. Different Applicable Dollar Catch-Up 

Limits and Universal Availability 

In accordance with the universal 

availability requirement in section 

414(v)(4), existing § 1.414(v)–1(e)(1)(i) 

sets forth a general rule that an 

applicable employer plan that offers 

catch-up contributions and that is 

otherwise subject to section 401(a)(4) 

(including a plan that is subject to 

section 401(a)(4) pursuant to section 

403(b)(12)) will not satisfy the 

requirements of section 401(a)(4) unless 

all catch-up eligible participants who 

participate under any applicable 

employer plan maintained by the 

employer are provided with an effective 

opportunity to make the same dollar 

amount of catch-up contributions. 

The Treasury Department and the IRS 

do not believe that a plan should fail to 

satisfy the universal availability 

requirement merely because the plan 

utilizes the increased limit for catch-up 

eligible participants attaining age 60 

through 63 that is permitted under the 

Code pursuant to section 414(v)(2)(E). 

Thus, a new provision would be added 

to § 1.414(v)–1(e)(1) setting forth an 

exception to the general rule in 

§ 1.414(v)–1(e)(1)(i) for a plan that 

permits each catch-up eligible 

participant to make elective deferrals up 

to the statutory maximum dollar amount 

of catch-up contributions permitted 

with respect to the participant. Under 

this new exception, an applicable 

employer plan would not fail to satisfy 

the requirements of section 401(a)(4) 

merely because the plan allows catch-up 

eligible participants who are subject to 

the increased applicable dollar catch-up 

limit for participants attaining age 60 

through 63 under section 414(v)(2)(E) to 

make catch-up contributions up to that 

increased limit, while permitting other 

catch-up eligible participants to make 

catch-up contributions only up to the 

applicable dollar catch-up limit that 

applies generally under section 

414(v)(2)(B)(i) or (ii), as applicable.6

Similarly, an applicable employer 

plan that covers employees in both the 

United States and Puerto Rico would 

not fail to satisfy the requirements of 

section 401(a)(4) merely because the 

plan allows catch-up eligible 

participants whose catch-up 

contributions are subject to the limit set 

forth in section 1081.01(d)(7) of the 

Puerto Rico Internal Revenue Code of 

2011 (13 L.P.R.A. section 30391(d)(7)), 

as amended (Puerto Rico Code), to make 

catch-up contributions only up to the 

amount of that limit.7 The Treasury 

Department and the IRS request 

comments on the application of the 

limits in the case of an employee who 

performs service for an employer both 

in Puerto Rico and the United States in 

the same year. 

III. Proposed § 1.414(v)–2 

A. General Rules Relating to the 

Requirements of Section 414(v)(7) 

1. Roth Catch-Up Requirement Under 

Section 414(v)(7)(A) 

Proposed § 1.414(v)–2(a) would set 

forth general rules relating to the Roth 

catch-up requirement under section 

414(v)(7)(A). Under proposed 

§ 1.414(v)–2(a)(2), if a catch-up eligible 

participant in an applicable employer 

plan had FICA wages for the preceding 

calendar year from the employer 

sponsoring the plan (as defined in 

proposed § 1.414(v)–2(b)(3)) that 

exceeded $145,000, then section 

414(v)(1) would apply with respect to 

the participant’s elective deferrals that 

are catch-up contributions only if they 

are designated Roth contributions (as 

defined in section 402A(c)(1)). Under 

proposed § 1.414(v)–2(a)(3), the 

$145,000 Roth catch-up wage threshold 

would be subject to cost-of-living 

adjustments, in accordance with section 

414(v)(7)(E).8 Under proposed 

§ 1.414(v)–2(a)(4), the Roth catch-up 

requirement would not apply to a 

participant in a SEP arrangement or a 

SIMPLE IRA plan, in accordance with 

section 414(v)(7)(C). 

Consistent with section 414(v)(7)(A) 

and the description of anticipated 

guidance in Notice 2023–62, proposed 

§ 1.414(v)–2(a)(2) would provide that a 

participant who did not have FICA 

wages exceeding $145,000 (as adjusted) 

from the employer sponsoring the plan 

for the preceding calendar year would 

not be subject to the Roth catch-up 

requirement under the plan for the 

current year. Proposed § 1.414(v)–2(a)(2) 

would define FICA wages by reference 

to the FICA taxes imposed by sections 

3101(a) and 3111(a), not sections 

3101(b) and 3111(b), and notes that the 

wages are taken into account for this 

purpose in the same year that they are 

taken into account for FICA tax 

purposes. Accordingly, an individual 

who did not have any FICA wages from 

the employer sponsoring the plan for 

the preceding calendar year (for 

example, a partner who had only selfemployment income; an individual who 

had wages under section 3231(e) that 

are subject to taxation under the 

Railroad Retirement Tax Act, codified at 

title 45, chapter 9 of the United States 

Code, rather than FICA; or a State or 

local government employee whose 

services were excluded from the 

definition of employment under section 

3121(b)(7) without regard to section 

3121(u)) would not be subject to the 

Roth catch-up requirement under the 

plan in the current year. Similarly, an 

individual who received cash 

compensation from the employer 

sponsoring the plan in the preceding 

calendar year but nevertheless did not 

have any FICA wages from the employer 

for that year (for example, because the 

compensation was taxed in an earlier 

year pursuant to section 3121(v)(2)) 

would not be subject to the Roth catchup requirement under the plan in the 

current year. 


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9By contrast, if none of the participants who are 

subject to the Roth catch-up requirement are 

permitted to make catch-up contributions under a 

plan for a plan year (for example, if a plan does not 

include a qualified Roth contribution program), 

then section 414(v)(7)(A) would not be considered 

to apply to any catch-up eligible participant in the 

plan for the plan year (and the requirement of 

section 414(v)(7)(B) would not apply to the plan). 

This interpretation of section 414(v)(7)(B) is 

consistent with the Joint Committee on Taxation 

general explanation of the provision. See JCS–1–23 

(December 2023). 

10For purposes of this NPRM, a dual-qualified 

plan includes a plan for which an election under 

section 1022(i)(2) of the Employee Retirement 

Income Security Act of 1974 (Pub. L. 93–406, 88 

Stat. 829), as amended (ERISA), has been made. 

Further, proposed § 1.414(v)–2 would 

not require that the Roth catch-up wage 

threshold be prorated for the first year 

of hire. Thus, a participant who worked 

for the employer sponsoring the plan for 

only part of the preceding calendar year 

would be subject to the Roth catch-up 

requirement in the current year only if 

the participant had wages exceeding the 

full Roth catch-up wage threshold from 

the employer for the preceding calendar 

year. 

2. Availability of Roth Catch-Up 

Contributions Under Section 

414(v)(7)(B) 

Section 414(v)(7)(B) provides that, in 

the case of an applicable employer plan 

with respect to which section 

414(v)(7)(A) applies to any participant 

for a plan year, section 414(v)(1) shall 

not apply to the plan unless the plan 

provides that any catch-up eligible 

participant may make catch-up 

contributions as designated Roth 

contributions. In accordance with 

section 414(v)(7)(B), proposed 

§ 1.414(v)–2(a)(5)(i) would provide that 

if any catch-up eligible participant who 

is subject to the Roth catch-up 

requirement is permitted to make catchup contributions as designated Roth 

contributions under an applicable 

employer plan for a plan year, then the 

plan would be required to allow all 

other catch-up eligible participants to 

also make catch-up contributions as 

designated Roth contributions for the 

plan year.9

Proposed § 1.414(v)–2(a)(5)(ii) sets 

forth a rule that would address the 

application of section 414(v)(7)(B) to a 

plan that is subject to the qualification 

requirements of both section 401(a) and 

section 1081.01 of the Puerto Rico Code 

(dual-qualified plan).10 If a dualqualified plan that covers both 

employees in the United States and 

employees in Puerto Rico permits any 

catch-up eligible participant who is 

subject to the Roth catch-up 

requirement to make catch-up 

contributions as designated Roth 

contributions for a plan year, then, in 

accordance with section 414(v)(7)(B), 

the plan is generally required to permit 

all catch-up eligible participants to 

make catch-up contributions as 

designated Roth contributions for the 

plan year. The Puerto Rico Code does 

not provide for designated Roth 

contributions, but it does allow plans to 

offer the opportunity to make after-tax 

contributions. Accordingly, in the case 

of a dual-qualified plan that permits 

Roth catch-up contributions for 

participants in the United States, 

proposed § 1.414(v)–2(a)(5)(ii) would 

treat the requirements of section 

414(v)(7)(B) as satisfied with respect to 

a catch-up eligible participant who is 

subject to section 1081.01 of the Puerto 

Rico Code if the plan permits the 

participant to make catch-up 

contributions as after-tax contributions 

within the meaning of section 

1081.01(a)(15) of the Puerto Rico Code. 

B. Rules of Operation for Implementing 

the Roth Catch-Up Requirement 

1. Designated Roth Contributions That 

Are Treated as Catch-Up Contributions 

for Purposes of the Roth Catch-Up 

Requirement 

The Treasury Department and the IRS 

received comments in response to 

Notice 2023–62 requesting clarification 

that designated Roth contributions made 

at any point within a year may be 

counted towards satisfaction of the Roth 

catch-up requirement, even if the 

designated Roth contributions are made 

earlier than the contributions that are 

determined to be catch-up contributions 

(that is, before the participant is 

considered to have reached an 

applicable limit on elective deferrals for 

the year). 

In general, under existing § 1.414(v)– 

1(b)(2)(i)(A) and (c)(3), the amount of a 

participant’s elective deferrals in excess 

of an applicable limit is determined as 

of the end of a plan year (or limitation 

year, in the case of the section 415(c) 

limit) by comparing the participant’s 

total elective deferrals for the plan year 

(or total annual additions for the 

limitation year) with the applicable 

limit for the plan year (or limitation 

year). However, under § 1.414(v)– 

1(c)(3), in the case of an applicable limit 

that is applied on the basis of a year 

other than the plan year or limitation 

year (for example, the calendar-year 

limit on elective deferrals under section 

401(a)(30)), the determination of 

whether elective deferrals are treated as 

catch-up contributions is made at the 

time they are deferred. Thus, if the 

timing rule in § 1.414(v)–1(c)(3) that 

applies for purposes of determining 

whether an elective deferral is a catchup contribution also applies for 

purposes of determining whether a 

designated Roth contribution is a catchup contribution that satisfies the Roth 

catch-up requirement, then, in the case 

of elective deferrals that are catch-up 

contributions because they exceed a 

calendar-year limit (such as the section 

401(a)(30) limit), only elective deferrals 

that are made after reaching that limit 

would be taken into account in 

satisfying the Roth catch-up 

requirement. 

Commenters suggested that limiting 

the designated Roth contributions that 

may be taken into account in satisfying 

the Roth catch-up requirement in this 

manner is not an appropriate approach. 

For example, a commenter noted that if 

this approach is used, then a catch-up 

eligible participant who would like to 

make elective deferrals for a calendar 

year in an amount equal to the sum of 

the section 401(a)(30) limit on elective 

deferrals and the applicable dollar 

catch-up limit would be required to 

make the elective deferrals as 

designated Roth contributions during 

the latter part of the year (or after the 

section 401(a)(30) limit is reached). This 

would be required even if the 

participant would prefer to have 

designated Roth contributions made 

throughout the year or even if the 

participant had already frontloaded the 

designated Roth contributions by 

making elective deferrals in an amount 

equal to the applicable dollar catch-up 

limit as designated Roth contributions 

during the earlier part of the year. 

To address commenters’ concerns, 

provide maximum flexibility for 

participants, and alleviate 

administrative burdens, proposed 

§ 1.414(v)–2(b)(1) would take into 

account designated Roth contributions 

that are made prior to an applicable 

limit being reached for purposes of 

determining whether the Roth catch-up 

requirement is satisfied. Under 

proposed § 1.414(v)–2(b)(1), an elective 

deferral that is determined to be a catchup contribution at the time of 

contribution under the timing rules in 

§ 1.414(v)–1(c)(3) (for example, on 

account of exceeding the section 

401(a)(30) limit) would be required to be 

made as a designated Roth contribution 

by a participant who is subject to the 

Roth catch-up requirement only to the 

extent the participant has not previously 

made elective deferrals as designated 

Roth contributions during the calendar 

year or taxable year equal to the 

applicable dollar catch-up limit. Thus, if 

a catch-up eligible participant’s total 

elective deferrals that are designated 

Roth contributions over the course of a 


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11This is also the case with respect to elective 

deferrals that are determined to be catch-up 

contributions because the plan would fail the actual 

deferral percentage (ADP) test under section 

401(k)(3) if it did not correct under section 

401(k)(8). The determination of elective deferrals 

that are catch-up contributions because they are in 

excess of this ADP limit in § 1.414(v)–1(b)(1)(iii) 

occurs in the plan year following the plan year for 

which the elective deferrals are made. 

12This is particularly true if an employer makes 

the top-paid group election under section 

414(q)(1)(B)(ii). 

13 In general, FICA wages are determined 

separately by related employers. See 

§ 31.3121(a)(1)–(a)(3) (‘‘If during a calendar year the 

employee receives remuneration from more than 

one employer, the annual wage limitation does not 

apply to the aggregate remuneration received from 

all of such employers, but instead applies to the 

remuneration received during such calendar year 

from each employer.’’). See also § 31.3121(s)–1(a) 

(‘‘For purposes of section . . . 3121(a)(1), except as 

otherwise provided . . . , when two or more 

related corporations concurrently employ the same 

individual and compensate that individual . . . , 

each of the corporations is considered to have paid 

only the remuneration it actually disburses to that 

individual.’’). 

14This rule applies even if responsibilities under 

chapter 21 of the Code are imposed on a third party, 

such as a section 3401(d) statutory employer, a 

section 3504 agent, a section 3121(s) common 

Continued 

calendar year or taxable year equal or 

exceed the total elective deferrals that 

are determined to be catch-up 

contributions, then the participant 

would satisfy the Roth catch-up 

requirement.11

2. Plans That Do Not Include a Qualified 

Roth Contribution Program 

In accordance with section 402A(a), 

an applicable employer plan may, but is 

not required to, include a qualified Roth 

contribution program within the 

meaning of section 402A(b). However, 

in the case of a catch-up eligible 

participant who is subject to the Roth 

catch-up requirement, section 414(v)(1) 

applies only if any catch-up 

contributions made by the participant 

are designated Roth contributions. 

Therefore, if an applicable employer 

plan does not include a qualified Roth 

contribution program, then a participant 

who is subject to the Roth catch-up 

requirement would be prohibited from 

making catch-up contributions under 

the plan. 

The proposed regulations would not 

require an applicable employer plan to 

include a qualified Roth contribution 

program. Thus, under the proposed 

regulations, an applicable employer 

plan that does not have a qualified Roth 

contribution program would be allowed 

to permit catch-up eligible participants 

who are not subject to the Roth catchup requirement to make catch-up 

contributions even though catch-up 

eligible participants who are subject to 

the Roth catch-up requirement would 

not be permitted to make catch-up 

contributions. 

However, the universal availability 

requirement under existing § 1.414(v)– 

1(e) provides that an applicable 

employer plan will be treated as failing 

to meet the nondiscrimination 

requirements under section 401(a)(4) 

with respect to benefits, rights, and 

features unless all catch-up eligible 

participants under the plan are provided 

with an effective opportunity to make 

the same dollar amount of catch-up 

contributions. Proposed § 1.414(v)– 

1(e)(1)(iii) would add a rule providing 

that an applicable employer plan would 

not violate the universal availability 

requirement merely because the plan 

permits each catch-up eligible 

participant to make elective deferrals up 

to the maximum dollar amount of catchup contributions permitted under 

applicable law with respect to that 

participant. If a plan does not include a 

qualified Roth contribution program, 

then the maximum dollar amount of 

catch-up contributions permitted based 

on applicable law with respect to a 

catch-up eligible participant in the plan 

who is subject to the Roth catch-up 

requirement is $0. Proposed § 1.414(v)– 

2(b)(2) would address this situation by 

providing that an applicable employer 

plan that does not include a qualified 

Roth contribution program does not fail 

to satisfy the universal availability 

requirement merely because the plan (or 

another applicable employer plan 

maintained by the employer that does 

not include a qualified Roth 

contribution program) does not permit 

catch-up eligible participants who are 

subject to the Roth catch-up 

requirement to make catch-up 

contributions. 

Generally, under § 1.414(v)–1(d)(4), 

an applicable employer plan does not 

violate § 1.401(a)(4)–4 merely because 

the group of employees for whom catchup contributions are currently available 

is not a group of employees that would 

satisfy the minimum coverage 

requirements of section 410(b). Under 

the proposed regulations, § 1.414(v)– 

1(d)(4) would not apply to an applicable 

employer plan that does not include a 

qualified Roth contribution program and 

permits only catch-up eligible 

participants who are not subject to the 

Roth catch-up requirement to make 

catch-up contributions. The reason the 

proposed regulations would provide 

that § 1.414(v)–1(d)(4) does not apply to 

such a plan is that not all catch-up 

eligible employees under the plan will 

be able to make catch-up contributions. 

Because the Roth catch-up wage 

threshold is slightly lower than the 

wage threshold used in the definition of 

highly compensated employee (HCE) 

under section 414(q)(1)(B), some nonHCEs may be subject to the Roth catchup requirement.12 Thus, if a plan that 

does not include a qualified Roth 

contribution program prohibits catch-up 

eligible participants who are subject to 

the Roth catch-up requirement from 

making catch-up contributions, while 

permitting other catch-up eligible 

participants to make catch-up 

contributions, then the outcome of the 

nondiscrimination test with respect to 

the availability of catch-up 

contributions performed under 

§ 1.401(a)(4)–4 may be affected. 

Accordingly, proposed § 1.414(v)– 

2(b)(2) would permit such a plan to also 

preclude one or more catch-up eligible 

participants who are HCEs and who are 

not subject to the Roth catch-up 

requirement (for example, because they 

did not receive FICA wages for the 

preceding year) from making catch-up 

contributions if doing so facilitates 

satisfaction of § 1.401(a)(4)–4 with 

respect to the availability of catch-up 

contributions. 

3. Determination of Employer 

Sponsoring the Plan 

The determination as to whether the 

Roth catch-up requirement applies to a 

catch-up eligible participant is based on 

the amount of the participant’s FICA 

wages for the preceding year ‘‘from the 

employer sponsoring the plan,’’ but that 

phrase is not defined in section 

414(v)(7). For purposes of determining 

an individual’s FICA wages, the term 

‘‘employer’’ generally means the person 

for whom the individual performs 

service as an employee under the 

common law standards that apply under 

§ 31.3121(d)–1(c). Thus, for purposes of 

determining the individual’s FICA 

wages, the term ‘‘employer’’ generally 

refers solely to an individual’s common 

law employer.13 Because the phrase 

‘‘from the employer sponsoring the 

plan’’ modifies the reference to FICA 

wages in section 414(v)(7)(A), the 

determination of whether the Roth 

catch-up requirement applies to a 

participant would generally follow the 

FICA rules and be based on the FICA 

wages from the participant’s common 

law employer. 

Thus, proposed § 1.414(v)–2(b)(3) 

would provide that, with respect to each 

catch-up eligible participant who is 

subject to the Roth catch-up 

requirement, the term ‘‘employer 

sponsoring the plan’’ only refers to the 

participant’s common law employer 

contributing to the plan.14 Under the 


ddrumheller on DSK120RN23PROD with PROPOSALS1
2652 Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 

paymaster, a section 3511 certified PEO, or a 

section 3512 motion picture project employer. 

15This would not be the case with respect to an 

employee of the joint board of trustees who 

participates in the plan. In that case, the joint board 

of trustees would be both the ‘‘sponsor’’ within the 

meaning of section 3(16)(B) of ERISA and the 

common law employer. 

proposed regulation, the ‘‘employer 

sponsoring the plan’’ would not include 

other entities that are treated as a single 

employer with a catch-up eligible 

participant’s common law employer 

under section 414(b), (c), (m), or (o). For 

example, if there are multiple employers 

participating in a plan that are treated 

as a single employer under the 

controlled group rules, each of the 

participating employers that is a 

common law employer would be a 

separate employer sponsoring the plan. 

Similarly, in the context of catch-up 

contributions made to a multiple 

employer plan or multiemployer plan 

by a catch-up eligible participant subject 

to the Roth catch-up requirement, the 

‘‘employer sponsoring the plan’’ means 

the participant’s common law employer 

that is the source of the participant’s 

FICA wages and contributions to the 

plan. Some commenters have suggested 

that the Roth catch-up requirement does 

not apply to a multiemployer plan 

because section 3(16)(B) of ERISA 

defines the ‘‘plan sponsor’’ of a 

multiemployer plan as the joint board of 

trustees rather than the contributing 

employers. Under the interpretation of 

section 414(v)(7)(A) suggested by the 

commenters, the employer that is the 

source of the employee’s FICA wages 

would be a signatory of the collective 

bargaining agreement pursuant to which 

the employer’s employees participate in 

the multiemployer plan and a 

contributor to that plan, but would not 

be the ‘‘employer sponsoring the plan’’ 

for purposes of section 414(v)(7)(A).15

The Treasury Department and the IRS 

do not agree that this is a reasonable 

interpretation of section 414(v)(7)(A) 

because ERISA is a separate statute from 

the Code and does not include any 

provisions that directly apply, or are 

even parallel, to the Code’s catch-up 

contribution rules. Rather, in the 

context of the Roth catch-up 

requirement, the ‘‘employer sponsoring 

the plan’’ is the common law employer 

that is the source of the participant’s 

FICA wages and contributions to the 

multiemployer plan. 

The Treasury Department and the IRS 

understand from comments received 

that multiemployer plans and other 

plans maintained pursuant to a 

collective bargaining agreement would 

benefit from an extended applicability 

date for the Roth catch-up requirement 

so that the terms of any applicable 

collective bargaining agreement can be 

conformed to that requirement. In 

response to these comments, proposed 

§ 1.414(v)–2(e)(2)(ii) would provide that 

proposed § 1.414(v)–2 does not apply to 

a plan maintained pursuant to one or 

more collective bargaining agreements 

until the first taxable year beginning 

more than 6 months after the date that 

final regulations adding § 1.414(v)–2 to 

the Code of Federal Regulations are 

issued, or, if later, the first taxable year 

beginning after the date on which the 

last collective bargaining agreement 

related to the plan that is in effect on 

December 31, 2025, terminates 

(determined without regard to any 

extension of those collective bargaining 

agreements). 

4. Plans With More Than One Employer 

Sponsoring the Plan 

Consistent with the treatment of the 

term ‘‘employer sponsoring the plan’’ as 

referring to a catch-up eligible 

participant’s common law employer 

without aggregation with other 

employers under section 414(b), (c), (m), 

or (o), proposed § 1.414(v)–2(b)(4) 

would apply the Roth catch-up 

requirement on the basis of FICA wages 

(if any) for the preceding calendar year 

solely from a participant’s common law 

employer without aggregating those 

wages with the FICA wages from other 

employers, including employers that 

participate in the same plan or 

employers that are treated as a single 

employer together with the common law 

employer under section 414(b), (c), (m), 

or (o). Thus, a catch-up eligible 

participant who had FICA wages 

exceeding $145,000 (as adjusted) in the 

preceding calendar year from any 

employer other than the employer 

sponsoring the plan (as defined with 

respect to the participant in accordance 

with proposed § 1.414(v)–2(b)(3)) would 

not be subject to the Roth catch-up 

requirement under the plan in the 

current year if the participant did not 

also have more than $145,000 (as 

adjusted) of FICA wages for the 

preceding year from the employer 

sponsoring the plan. This is consistent 

with the description of anticipated 

guidance that was included in Notice 

2023–62. 

C. Treatment of Pre-Tax Catch-Up 

Contributions That Are Required To Be 

Designated Roth Contributions Under 

Section 414(v)(7) 

1. Correcting a Violation of the Section 

414(v)(7) Roth Catch-Up Requirement 

Section 414(v)(7)(A) provides that 

section 414(v)(1) applies to catch-up 

contributions made by a participant 

who is subject to the Roth catch-up 

requirement only if the catch-up 

contributions are designated Roth 

contributions. If a participant who is 

subject to the Roth catch-up 

requirement makes a pre-tax elective 

deferral in excess of an applicable limit, 

then section 414(v)(1) will not apply to 

that elective deferral and the plan will 

fail to be qualified unless the plan 

corrects the failure. A plan is permitted 

to correct this type of error by 

distributing the additional elective 

deferrals that are not catch-up 

contributions under section 414(v)(1) 

from the plan in accordance with a 

permitted correction method specific to 

the limit on elective deferrals that the 

additional elective deferrals exceeded 

(for example, the correction method in 

§ 1.402(g)–1(e) for elective deferrals that 

exceeded the section 401(a)(30) limit, 

the correction method in section 6.06(1) 

and (2) of Revenue Procedure 2021–30, 

2021–31 IRB 172, for elective deferrals 

that resulted in the participant’s annual 

additions exceeding the section 415(c) 

limit, or the correction method in 

§ 1.401(k)–2(b)(2) or Appendix B, 

section 2.01, of Revenue Procedure 

2021–30 for elective deferrals that 

exceeded the ADP limit). 

In response to Notice 2023–62, the 

Treasury Department and the IRS 

received several comments requesting 

guidance that would permit a pre-tax 

elective deferral that exceeds an 

applicable limit to be treated as a 

designated Roth contribution in order to 

satisfy the Roth catch-up requirement 

(as an alternative to distribution of these 

elective deferrals from the plan). 

Commenters requested this guidance 

with respect to elective deferrals that 

were intended to be catch-up 

contributions at the time amounts were 

contributed (because the contributions 

exceeded plan or statutory limits) but 

which were not made as Roth 

contributions because of an error. 

Commenters also raised specific 

concerns relating to elective deferrals 

that are catch-up contributions because 

they exceed the ADP limit. This concern 

arises because the determination of 

whether an elective deferral exceeds the 

ADP limit (and, therefore, could be a 

catch-up contribution) cannot be made 

until after the close of the plan year 

(that is, after the elective deferral is 

made). 

The Treasury Department and the IRS 

agree that a correction procedure by 

which a plan can correct a section 

414(v)(7) failure (that is, a failure to 

satisfy the Roth catch-up requirement), 

other than through distribution from the 

plan of elective deferrals in excess of an 


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16Commenters also suggested that a plan be 

permitted to avoid having to correct section 

414(v)(7) failures by requiring that all catch-up 

contributions be made as designated Roth 

contributions. The Treasury Department and the 

IRS have considered that suggestion and concluded 

that, for a participant who is not subject to the Roth 

catch-up requirement, allowing a plan design that 

requires all participants’ catch-up contributions to 

be designated Roth contributions would be 

inconsistent with the language of section 

402A(b)(1), which provides that a designated Roth 

contribution must be elected by an employee ‘‘in 

lieu of all or a portion of elective deferrals the 

employee is otherwise eligible to make.’’ 

17This method would generally not be available 

with respect to an elective deferral that is a catchup contribution because it exceeds the ADP limit 

under a plan with a calendar year plan year. This 

is because a participant’s Form W–2 for a year is 

generally filed and furnished to the participant 

prior to determination of any catch-up 

contributions made by the participant because the 

elective deferrals exceed the ADP limit for such a 

plan year. 

18A plan would not be required under proposed 

§ 1.414(v)–2(c)(3)(i) to have such practices and 

procedures in place in order to correct a pre-tax 

catch-up contribution that is a catch-up 

contribution because it exceeds an employerprovided limit as described in § 1.414(v)–1(b)(1)(ii). 

A plan would also not be required to have such 

practices and procedures in place in order to correct 

a pre-tax elective deferral that is a catch-up 

contribution because it exceeds the ADP limit as 

described in § 1.414(v)–1(b)(1)(iii). This is because 

these elective deferrals are not determined to be 

catch-up contributions under § 1.414(v)–1(c)(3) 

until the last day of the plan year of deferral or in 

the following plan year. 

19 In the case of a plan that does not provide for 

a deemed Roth catch-up election, if the plan 

provides that it will not accept an elective deferral 

that exceeds an applicable limit on elective 

deferrals unless the elective deferral is a catch-up 

contribution, then the plan may be designed to 

automatically stop elective deferrals for a catch-up 

eligible participant who is subject to the Roth catchup requirement after the participant’s elective 

deferrals reach an applicable limit (unless the 

participant has designated the additional elective 

deferrals as Roth contributions). 

applicable limit which fail to comply 

with section 414(v)(7)(A), is warranted. 

Thus, proposed § 1.414(v)–2(c) would 

set forth additional permissible methods 

and related rules for correcting a pre-tax 

elective deferral that exceeds an 

applicable limit in order to comply with 

the Roth catch-up requirement, which 

are discussed in the next section of this 

Explanation of Provisions.16

2. Additional Permissible Correction 

Methods for Elective Deferrals That 

Exceed an Applicable Limit 

Proposed § 1.414(v)–2(c)(2) sets forth 

two new methods that a plan would be 

permitted to use to correct a failure of 

the Roth catch-up requirement as it 

applies to elective deferrals that exceed 

an applicable limit. Under proposed 

§ 1.414(v)–2(c)(2)(i), a plan would be 

permitted to provide for either 

correction method but, with respect to 

a plan year, the plan would be required 

to apply the same correction method for 

all participants with elective deferrals in 

excess of the same applicable limit. 

a. Form W–2 Correction Method 

Under the correction method set forth 

in proposed § 1.414(v)–2(c)(2)(ii), a plan 

would be permitted to correct a 

participant’s pre-tax catch-up 

contribution that was required to be a 

designated Roth contribution by 

transferring the elective deferral 

(adjusted for allocable gain or loss) from 

the participant’s pre-tax account to the 

participant’s designated Roth account 

and reporting the contribution (not 

adjusted for allocable gain or loss) as a 

designated Roth contribution on the 

participant’s Form W–2 (Wage and Tax 

Statement) for the year of the deferral 

(that is, reporting the contribution as if 

it had been correctly made as a 

designated Roth contribution). Under 

this correction method, the contribution 

(not adjusted for allocable gain or loss) 

would be includible in the participant’s 

gross income for the year of the deferral 

as if the contribution had been correctly 

made as a designated Roth contribution. 

However, this method would not be 

permitted to be used if the participant’s 

Form W–2 for that year has already been 

filed or furnished to the participant.17

b. In-Plan Roth Rollover Correction 

Method 

Under proposed § 1.414(v)–2(c)(2)(iii), 

a plan would be permitted to correct a 

participant’s pre-tax catch-up 

contribution that was required to be a 

designated Roth contribution through an 

in-plan Roth rollover in accordance 

with section 402A(c)(4)(E). Under this 

method, a plan would directly roll over 

the elective deferral (adjusted for 

allocable gain or loss) from the 

participant’s pre-tax account to the 

participant’s designated Roth account 

and report the amount of the in-plan 

Roth rollover on Form 1099–R 

(Distributions From Pensions, 

Annuities, Retirement or Profit-Sharing 

Plans, IRAs, Insurance Contracts, etc.) 

for the year of rollover. The provisions 

of Notice 2010–84, 2010–51 IRB 872, 

and Notice 2013–74, 2013–52 IRB 819, 

would generally apply to an in-plan 

Roth rollover used to correct a section 

414(v)(7) failure. Thus, the amount 

directly rolled over to the participant’s 

designated Roth account would be the 

same as the amount reported on Form 

1099–R, and the contribution (adjusted 

for allocable gain or loss) would be 

includible in the participant’s gross 

income for the year of the rollover. 

3. General Correction Requirements and 

Deadlines To Correct 

a. Prerequisite To Correct Certain 

Section 414(v)(7) Failures Under the 

New Correction Methods 

Under proposed § 1.414(v)–2(c)(3)(i), 

a plan would be eligible to use a new 

correction method with respect to pretax elective deferrals that exceed a 

statutory limit described in § 1.414(v)– 

1(b)(1)(i) (such as contributions that 

exceed the section 401(a)(30) limit or 

that result in the participant’s annual 

additions exceeding the section 415(c) 

limit) only if the plan sponsor or plan 

administrator has in place practices and 

procedures designed to result in 

compliance with section 414(v)(7) at the 

time an elective deferral is made.18 A 

plan would not meet this requirement 

unless the plan provides for a deemed 

Roth catch-up election in accordance 

with proposed § 1.401(k)–1(f)(5)(iii) and 

(iv). Under the deemed Roth catch-up 

election approach, if a participant who 

is subject to the Roth catch-up 

requirement has made pre-tax elective 

deferrals for a calendar year that equal 

the section 401(a)(30) limit for the 

taxable year that begins in the calendar 

year, then subsequent elective deferrals 

made by the participant in the calendar 

year would automatically be made as 

designated Roth contributions, even if 

the participant has not made an 

affirmative election to make catch-up 

contributions as designated Roth 

contributions. Similarly, if such a 

participant has made pre-tax elective 

deferrals for a limitation year that result 

in the participant’s annual additions for 

the limitation year exceeding the section 

415(c) limit, then subsequent elective 

deferrals made by the participant in the 

limitation year would automatically be 

made as designated Roth contributions. 

If a plan does not provide for a 

deemed Roth catch-up election and the 

plan accepts a pre-tax elective deferral 

that would be a catch-up contribution 

on account of exceeding a statutory 

limit described in § 1.414(v)–1(b)(1)(i) 

and the elective deferral is required to 

be a designated Roth contribution in 

accordance with the Roth catch-up 

requirement, then the plan would not be 

eligible to use a correction method 

described in § 1.414(v)–2(c)(2) and, 

therefore, would have to use an 

otherwise-applicable correction method 

to distribute the elective deferral (for 

example, the correction method in 

§ 1.402(g)–1(e) relating to an elective 

deferral that exceeds the section 

401(a)(30) limit).19

A plan would not fail to meet the 

requirement to have in place practices 

and procedures that are designed to 

result in compliance with the Roth 


ddrumheller on DSK120RN23PROD with PROPOSALS1
2654 Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 

20The Treasury Department and the IRS invite 

comments on whether there are scenarios in which 

it would not be appropriate to require correction of 

pre-tax catch-up contributions that are required to 

be designated Roth contributions on the basis of a 

subsequent determination that the amount of FICA 

wages reported on the Form W–2 was incorrect. 

21 If the applicable deadline for a new correction 

method under the proposed regulations is not 

satisfied, then a section 414(v)(7) failure would 

need to be corrected by a distribution from the plan 

in accordance with the correction principles set 

forth in section 6 of Revenue Procedure 2021–30. 

catch-up requirement at the time an 

elective deferral is made merely because 

the plan determines the applicability of 

the Roth catch-up requirement to a 

participant solely on the basis of the 

participant’s FICA wages from the 

employer sponsoring the plan for the 

preceding calendar year as reported on 

a timely-filed Form W–2 with respect to 

the participant. However, if the amount 

of a participant’s FICA wages for the 

preceding calendar year that is timely 

reported on a Form W–2 is later 

determined to be incorrect, a plan 

would have to correct any pre-tax catchup contributions that should have been 

designated Roth contributions on the 

basis of the adjusted FICA wages for the 

preceding calendar year.20

b. Deadline To Correct Section 414(v)(7) 

Failures 

Proposed § 1.414(v)–2(c)(3)(iii) 

provides the deadlines that would apply 

for correction of a pre-tax catch-up 

contribution under the new correction 

methods for a section 414(v)(7) failure. 

Under the proposed regulation, the 

deadline to correct a section 414(v)(7) 

failure would depend on which limit is 

the basis for the pre-tax elective deferral 

being designated a catch-up 

contribution.21

If the elective deferral is a catch-up 

contribution because it exceeds the 

section 401(a)(30) limit on elective 

deferrals, then § 1.414(v)–2(c)(3)(iii)(A) 

would provide that the deadline to 

complete the corrective steps under 

proposed § 1.414(v)–2(c)(2) is April 15 

of the calendar year following the 

calendar year for which the elective 

deferral was made. This is consistent 

with the deadline that applies for 

correcting excess deferrals above the 

section 401(a)(30) limit by distribution 

under § 1.402(g)–1(e). 

If the elective deferral is a catch-up 

contribution because it results in the 

participant’s annual additions for a 

limitation year exceeding the section 

415(c) limit, then § 1.414(v)– 

2(c)(3)(iii)(B) would provide that the 

deadline to complete the corrective 

steps under proposed § 1.414(v)–2(c)(2) 

is the deadline that applies under 

§ 1.415(c)–1(b)(6) for allocating amounts 

to the limitation year for which the 

elective deferral was made. 

Under proposed § 1.414(v)– 

2(c)(3)(iii)(C), the deadline to correct a 

pre-tax catch-up contribution that 

exceeds the ADP limit under the new 

correction methods would be the date 

that is 21⁄2 months (6 months, in the 

case of plans that include an eligible 

automatic contribution arrangement 

within the meaning of section 414(w)) 

after the close of the plan year for which 

the excess contribution was made. This 

is consistent with the deadline under 

§ 1.401(k)–2(b)(5) for distributing excess 

contributions above the ADP limit in 

order to avoid a 10 percent excise tax on 

the excess contributions. Under the 

proposed regulations, this would also be 

the deadline to correct a pre-tax catchup contribution that is a catch-up 

contribution because it exceeds an 

employer-provided limit (because the 

determination of catch-up contributions, 

which are disregarded for purposes of 

the ADP test, needs to be made before 

the performance of the ADP test). 

Proposed Applicability Date 

The amendments to § 1.414(v)–1 are 

proposed to apply with respect to 

contributions in taxable years that begin 

more than 6 months after the date that 

final regulations amending § 1.414(v)–1 

are issued. However, the proposed 

regulations would permit a taxpayer to 

elect to apply: (1) proposed § 1.414(v)– 

1(c)(2)(ii)(C) and (c)(2)(iii)(C) (relating to 

the higher catch-up limit for certain 

newly-established SIMPLE plans) with 

respect to taxable years beginning after 

December 31, 2023, and (2) proposed 

§ 1.414(v)–1(c)(2)(i)(B), (c)(2)(ii)(B), and 

(c)(2)(iii)(B) (relating to the higher catchup limit applicable during the taxable 

year of attainment of age 60 through 63) 

with respect to taxable years beginning 

after December 31, 2024. 

For a plan that is not maintained 

pursuant to a collective bargaining 

agreement, proposed § 1.414(v)–2 and 

the proposed amendments to 

§§ 1.401(k)–1 and 1.403(b)–3 are 

proposed to apply with respect to 

contributions in taxable years beginning 

more than 6 months after the date that 

final regulations adding § 1.414(v)–2 to 

the Code of Federal Regulations are 

issued. For a plan that is maintained 

pursuant to one or more collective 

bargaining agreements, proposed 

§ 1.414(v)–2 and the proposed 

amendments to §§ 1.401(k)–1 and 

1.403(b)–3 are proposed to apply with 

respect to contributions in taxable years 

beginning after the later of the first 

taxable year described in the preceding 

sentence, or the first taxable year that 

begins after the date on which the last 

collective bargaining agreement related 

to the plan that is in effect on December 

31, 2025, terminates (determined 

without regard to any extension of those 

agreements). However, under the 

proposed regulations, a plan would be 

permitted to apply § 1.414(v)–2 and the 

amendments to §§ 1.401(k)–1 and 

1.403(b)–3 with respect to contributions 

in taxable years beginning after 

December 31, 2023. 

Special Analyses 

I. Regulatory Planning and Review 

Pursuant to the Memorandum of 

Agreement, Review of Treasury 

Regulations under Executive Order 

12866 (June 9, 2023), tax regulatory 

actions issued by the IRS are not subject 

to the requirements of section 6 of 

Executive Order 12866, as amended. 

Therefore, a regulatory impact 

assessment is not required. 

II. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520) requires that a 

Federal agency obtain the approval of 

the Office of Management and Budget 

(OMB) before collecting information 

from the public, whether such 

collection of information is mandatory, 

voluntary, or required to obtain or retain 

a benefit. A Federal agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless the collection of 

information displays a valid control 

number. 

These proposed regulations contain 

reporting requirements, contained in 

§ 1.414(v)–2(c), that relate to corrections 

of pre-tax elective deferrals that are 

catch-up contributions subject to the 

requirement under section 414(v)(7)(A) 

of the Code to be designated Roth 

contributions. These collections of 

information generally would be used by 

the IRS for tax compliance purposes and 

may involve submission of a Form 

1099–R to the IRS. This form and its 

associated burden are approved by the 

OMB under 1545–0119. The proposed 

regulation is not changing the reporting 

procedures already established for this 

form. 

The proposed regulations also contain 

a recordkeeping requirement that plan 

administrators maintain written 

practices and procedures designed to 

result in real-time compliance with 

certain requirements of section 

414(v)(7)(A). These recordkeeping 

requirements are expected to be usual 

and customary business practices that 

would impose no additional burden on 

respondents. Therefore, the 

recordkeeping requirement would not 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 2655 

require OMB approval under 5 CFR 

1320.3(b)(2). 

III. Regulatory Flexibility Act 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6), it is hereby 

certified that these proposed regulations 

will not have a significant economic 

impact on a substantial number of small 

entities. These proposed regulations 

would affect individuals and 

businesses, some of which may be small 

entities. 

Even if a substantial number of small 

entities would be affected, the economic 

impact of these proposed regulations is 

not expected to be significant. As 

discussed in the Paperwork Reduction 

Act section of this preamble, these 

proposed regulations may involve 

reporting and ordinary recordkeeping 

but are not expected to result in an 

increase in estimated burden. Any 

additional recordkeeping or 

administrative costs resulting from the 

changes relating to catch-up 

contributions that apply to certain 

section 401(k) plans, 403(b) plans, and 

eligible governmental 457(b) plans 

sponsored by small entities are 

consistent with existing procedures and 

are not expected to be significant. 

Therefore, a regulatory flexibility 

analysis under the Regulatory 

Flexibility Act is not required. 

The Treasury Department and the IRS 

invite comments on the impacts these 

proposed regulations may have on small 

entities. Pursuant to section 7805(f) of 

the Code, these proposed regulations 

will be submitted to the Chief Counsel 

for Advocacy of the Small Business 

Administration for comment on their 

impact on small businesses. 

IV. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 requires 

that agencies assess anticipated costs 

and benefits and take certain other 

actions before issuing a final rule that 

includes any Federal mandate that may 

result in expenditures in any one year 

by a State, local, or Tribal government, 

in the aggregate, or by the private sector, 

of $100 million in 1995 dollars, updated 

annually for inflation. The proposed 

regulations do not propose any rule that 

would include any Federal mandate that 

may result in expenditures by State, 

local, or Tribal governments, or by the 

private sector, in excess of that 

threshold. 

V. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has federalism implications if 

the rule either imposes substantial, 

direct compliance costs on State and 

local governments, and is not required 

by statute, or preempts State law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

Executive order. The proposed 

regulations do not propose rules that 

would have federalism implications, 

impose substantial direct compliance 

costs on State and local governments, or 

preempt State law within the meaning 

of the Executive order. 

Comments and Public Hearing 

Before these proposed regulations and 

proposed amendments to the 

regulations are adopted as final 

regulations, consideration will be given 

to comments regarding the notice of 

proposed rulemaking that are submitted 

timely to the IRS as prescribed in the 

preamble under the ADDRESSES section. 

The Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulations. All comments 

will be made available at 

www.regulations.gov. Once submitted to 

the Federal eRulemaking Portal, 

comments cannot be edited or 

withdrawn. 

A public hearing has been scheduled 

for April 7, 2025, beginning at 10 a.m. 

EST in the Auditorium of the Internal 

Revenue Building, 1111 Constitution 

Avenue NW, Washington, DC. Due to 

building security procedures, visitors 

must enter at the Constitution Avenue 

entrance. In addition, all visitors must 

present photo identification to enter the 

building. Because of access restrictions, 

visitors will not be admitted beyond the 

immediate entrance area more than 30 

minutes before the hearing starts. 

Participants may alternatively attend the 

public hearing by telephone. 

The rules of 26 CFR 601.601(a)(3) 

apply to the hearing. Persons who wish 

to present oral comments must submit 

an outline of the topics to be addressed 

and the time to be devoted to each topic 

by March 14, 2025 as prescribed in the 

preamble under the DATES section. A 

period of 10 minutes will be allocated 

to each person for making comments. 

An agenda showing the scheduling of 

the speakers will be prepared after the 

deadline for receiving outlines has 

passed. Copies of the agenda will be 

available free of charge at the hearing. 

If no outline of the topics to be 

discussed at the hearing is received by 

March 14, 2025, the public hearing will 

be cancelled. If the public hearing is 

cancelled, a notice of cancellation of the 

public hearing will be published in the 

Federal Register. 

Individuals who want to testify in 

person at the public hearing must send 

an email to publichearings@irs.gov to 

have your name added to the building 

access list. The subject line of the email 

must contain the regulation number 

REG–101268–24 and the language 

TESTIFY In Person. For example, the 

subject line may say: Request to 

TESTIFY In Person at Hearing for REG– 

101268–24. 

Individuals who want to testify by 

telephone at the public hearing must 

send an email to publichearings@irs.gov 

to receive the telephone number and 

access code for the hearing. The subject 

line of the email must contain the 

regulation number REG–101268–24 and 

the language TESTIFY Telephonically. 

For example, the subject line may say: 

Request to TESTIFY Telephonically at 

Hearing for REG–101268–24. 

Individuals who want to attend the 

public hearing in person without 

testifying must also send an email to 

publichearings@irs.gov to have your 

name added to the building access list. 

The subject line of the email must 

contain the regulation number REG– 

101268–24 and the language ATTEND 

In Person. For example, the subject line 

may say: Request to ATTEND Hearing In 

Person for REG–101268–24. Requests to 

attend the public hearing must be 

received by 5 p.m. EST on April 3, 2025. 

Individuals who want to attend the 

public hearing by telephone without 

testifying must also send an email to 

publichearings@irs.gov to receive the 

telephone number and access code for 

the hearing. The subject line of the 

email must contain the regulation 

number REG–101268–24 and the 

language ATTEND Hearing 

Telephonically. For example, the 

subject line may say: Request to 

ATTEND Hearing Telephonically for 

REG–101268–24. Requests to attend the 

public hearing must be received by 5 

p.m. EST on April 3, 2025. 

Hearings will be made accessible to 

people with disabilities. To request 

special assistance during the hearing, 

please contact the Publications and 

Regulations Branch of the Office of 

Associate Chief Counsel (Procedure and 

Administration) by sending an email to 

publichearings@irs.gov (preferred) or by 

telephone at (202) 317–6901 (not a tollfree number) by April 2, 2025. 

Statement of Availability of IRS 

Documents 

IRS Revenue Procedures, Revenue 

Rulings notices, and other guidance 

cited in this document are published in 

the Internal Revenue Bulletin (or 

Cumulative Bulletin) and are available 

from the Superintendent of Documents, 

U.S. Government Publishing Office, 

Washington, DC 20402, or by visiting 

the IRS website at http://www.irs.gov. 


ddrumheller on DSK120RN23PROD with PROPOSALS1
2656 Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 

Drafting Information 

The principal authors of these 

proposed regulations are Jessica S. 

Weinberger and Jason E. Levine, of the 

Office of the Associate Chief Counsel 

(Employee Benefits, Exempt 

Organizations, and Employment Taxes 

(EEE)). However, other personnel from 

the Treasury Department and the IRS 

participated in the development of the 

proposed regulations. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, the Treasury Department 

and the IRS propose to amend 26 CFR 

part 1 as follows: 

PART 1–INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by adding entries, 

in numerical order, for §§ 1.401(k)–1 

and 1.414(v)–2 to read in part, as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

* * * * * 

Section 1.401(k)–1 also issued under 26 

U.S.C. 401(m)(9). 

* * * * * 

Section 1.414(v)–2 also issued under 26 

U.S.C. 414(v)(7)(D). 

* * * * * 

■ Par. 2. Section 1.401(k)–1 is amended 

by adding paragraphs (f)(5)(iii) and (iv) 

to read as follows: 

§ 1.401(k)–1 Certain cash or deferred 

arrangements. 

* * * * * 

(f) * * * 

(5) * * * 

(iii) Deemed Roth catch-up 

contribution elections. For taxable years 

beginning after December 31, 2023, a 

plan that satisfies the requirements of 

paragraph (f)(5)(iv) of this section may 

provide that an employee who is subject 

to the requirement under section 

414(v)(7) to make any catch-up 

contributions as designated Roth 

contributions is deemed to have 

irrevocably designated any elective 

deferrals that are catch-up contributions 

as designated Roth contributions in 

accordance with paragraph (f)(1)(i) of 

this section. In such a case, the elective 

deferrals must be— 

(A) Treated by the employer as not 

excludible from the employee’s gross 

income, in accordance with paragraph 

(f)(2) of this section; and 

(B) Maintained by the plan in a 

separate account, in accordance with 

paragraph (f)(3) of this section. 

(iv) Election for employees subject to 

section 414(v)(7)(A). A plan satisfies the 

requirements of this paragraph (f)(5)(iv) 

only if it provides to an employee who 

is described in paragraph (f)(5)(iii) of 

this section an effective opportunity (as 

determined under paragraph (e)(2)(ii) of 

this section) to make a new election that 

is different than the deemed election 

described in paragraph (f)(5)(iii) of this 

section. 

* * * * * 

■ Par. 3. Section 1.403(b)–3 is amended 

in paragraph (c)(1) by: 

■ a. Removing the reference ‘‘§ 1.401(k)– 

1(f)(1) and (2)’’ and adding, in its place, 

the reference ‘‘§ 1.401(k)–1(f)(1), (2), (3), 

and (5)’’; 

■ b. Adding the language ‘‘(or is deemed 

to be so irrevocably designated in 

accordance with § 1.401(k)–1(f)(5)(iii))’’ 

immediately following the language 

‘‘otherwise eligible to make under the 

plan’’; and 

■ c. Removing the language ‘‘(within the 

meaning of § 1.401(k)–1(f)(2))’’ and 

adding, in its place, the language 

‘‘(within the meaning of § 1.401(k)– 

1(f)(3))’’. 

■ Par. 4. Section 1.414(v)–1 is amended 

by: 

■ a. In the last sentence of paragraph 

(a)(1), removing the language ‘‘this 

section and § 1.402(g)–2’’ and adding, in 

its place, the language ‘‘this section, and 

§§ 1.414(v)–2 and 1.402(g)–2’’; 

■ b. Adding paragraph (a)(4); 

■ c. Revising and republishing 

paragraph (c)(2); 

■ d. Adding paragraph (e)(1)(iii); and 

■ e. Revising and republishing 

paragraph (i). 

The additions and revisions read as 

follows: 

§ 1.414(v)–1 Catch-up contributions. 

(a) * * * 

(4) Catch-up contributions must be 

designated Roth contributions for 

certain participants. For provisions 

relating to the requirement under 

section 414(v)(7) that catch-up 

contributions made by certain catch-up 

eligible participants must be designated 

Roth contributions, see § 1.414(v)–2. 

* * * * * 

(c) * * * 

(2) Applicable dollar catch-up limit— 

(i) Plans other than SIMPLE Plans—(A) 

In general. Except as provided in 

paragraph (c)(2)(i)(B) of this section, the 

applicable dollar catch-up limit that 

applies under an applicable employer 

plan, other than a SIMPLE 401(k) plan 

described in section 401(k)(11) or a 

SIMPLE IRA plan described in section 

408(p), for a taxable year is $5,000, as 

adjusted for changes in the cost of living 

under paragraph (c)(2)(iii)(A) of this 

section. 

(B) Higher limit applicable during the 

taxable year of attainment of age 60 

through 63. For a taxable year beginning 

after 2024, with respect to a catch-up 

eligible participant who would attain 

age 60, 61, 62, or 63 during the taxable 

year, the applicable dollar catch-up 

limit for the taxable year under an 

applicable employer plan described in 

paragraph (c)(2)(i)(A) of this section is 

$11,250 (which is 150 percent of the 

applicable dollar catch-up limit 

described in paragraph (c)(2)(i)(A) of 

this section for a taxable year beginning 

in 2024), as adjusted for changes in the 

cost of living under paragraph 

(c)(2)(iii)(B) of this section. 

(ii) SIMPLE plans—(A) In general. 

Except as provided in paragraph 

(c)(2)(ii)(B) or (C) of this section, the 

applicable dollar catch-up limit that 

applies under a SIMPLE 401(k) plan 

described in section 401(k)(11) or a 

SIMPLE IRA plan described in section 

408(p) for a taxable year is $2,500, as 

adjusted for changes in the cost of living 

under paragraph (c)(2)(iii)(A) of this 

section. 

(B) Higher limit applicable during the 

taxable year of attainment of age 60 

through 63. For a taxable year beginning 

after 2024, with respect to a catch-up 

eligible participant who would attain 

age 60, 61, 62, or 63 during the taxable 

year, the applicable dollar catch-up 

limit for the taxable year under an 

applicable employer plan described in 

paragraph (c)(2)(ii)(A) of this section is 

$5,250 (which is 150 percent of the 

applicable dollar catch-up limit under 

paragraph (c)(2)(ii)(A) of this section for 

a taxable year beginning in 2025), as 

adjusted for changes in the cost of living 

under paragraph (c)(2)(iii)(B) of this 

section. 

(C) Higher limit for certain SIMPLE 

plans. For a taxable year beginning after 

2023, the applicable dollar catch-up 

limit under an applicable employer plan 

described in paragraph (c)(2)(ii)(A) of 

this section that is maintained by an 

eligible employer meeting the 

requirements in section 408(p)(2)(E)(iv) 

is $3,850 (which is 110 percent of the 

applicable dollar catch-up limit in effect 

under paragraph (c)(2)(ii)(A) of this 

section for a taxable year beginning in 

2024), as adjusted for changes in the 

cost of living under paragraph 

(c)(2)(iii)(C) of this section. The 

preceding sentence applies with respect 

to a taxable year only if the taxable year 

begins in a calendar year for which the 

eligible employer is described in section 

408(p)(2)(E)(i)(I) or makes the election 

described in section 408(p)(2)(E)(i)(II). 


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(iii) Cost-of-living adjustments—(A) In 

general. For a taxable year beginning 

after 2006, the applicable dollar catchup limit under paragraph (c)(2)(i)(A) or 

(c)(2)(ii)(A) of this section (whichever 

applies to the plan) is the initial amount 

($5,000 or $2,500, respectively), 

increased for changes in the cost of 

living. The increase is made at the same 

time and in the same manner as 

adjustments under section 415(d), 

except that the base period is the 

calendar quarter beginning July 1, 2005, 

and any increase that is not a multiple 

of $500 is rounded to the next lower 

multiple of $500. 

(B) Adjustments to higher limit 

applicable during the taxable year of 

attainment of age 60 through 63. For a 

taxable year beginning after 2025, the 

applicable dollar catch-up limit under 

paragraph (c)(2)(i)(B) or (c)(2)(ii)(B) of 

this section (whichever applies to the 

plan) is the initial amount ($11,250 in 

the case of paragraph (c)(2)(i)(B) of this 

section and $5,250 in the case of 

paragraph (c)(2)(ii)(B) of this section), 

increased for changes in the cost of 

living. The increase is made at the same 

time and in the same manner as 

adjustments under section 415(d), 

except that the base period is the 

calendar quarter beginning July 1, 2024, 

and any increase that is not a multiple 

of $500 is rounded to the next lower 

multiple of $500. 

(C) Adjustments to higher limit for 

certain SIMPLE plans. For a taxable year 

beginning after 2024, the applicable 

dollar catch-up limit under paragraph 

(c)(2)(ii)(C) of this section is the initial 

amount ($3,850), increased for changes 

in the cost of living. The increase is 

made at the same time and in the same 

manner as adjustments under section 

415(d), except that the base period is the 

calendar quarter beginning July 1, 2023, 

and any increase that is not a multiple 

of $500 is rounded to the next lower 

multiple of $500. 

* * * * * 

(e) * * * 

(1) * * * 

(iii) Plans providing the statutory 

maximum catch-up contributions. An 

applicable employer plan does not fail 

to satisfy the universal availability 

requirement of this paragraph (e) merely 

because of differences among catch-up 

eligible participants as to the dollar 

amount of catch-up contributions they 

are permitted to make, provided that 

each catch-up eligible participant who 

participates under any applicable 

employer plan maintained by the 

employer is provided with an effective 

opportunity to make the maximum 

amount of catch-up contributions 

permitted for that participant under 

section 414(v) or, if applicable, section 

1081.01(d)(7) of the Puerto Rico Internal 

Revenue Code of 2011 (13 L.P.R.A. 

section 30391(d)(7)), as amended. For 

example, an applicable employer plan 

does not fail to satisfy the universal 

availability requirement of this 

paragraph (e) merely because the plan 

permits catch-up eligible participants 

who would attain age 60, 61, 62, or 63 

during a taxable year to make catch-up 

contributions up to the increased 

applicable dollar catch-up limit in 

section 414(v)(2)(E) while only 

permitting other catch-up eligible 

participants to make catch-up 

contributions up to the applicable dollar 

catch-up limit in section 414(v)(2)(B) 

without regard to section 414(v)(2)(E). 

* * * * * 

(i) Applicability dates—(1) In general. 

Except as described in paragraph (i)(2) 

of this section or § 1.414(v)–2(e), section 

414(v) applies to contributions in 

taxable years beginning on or after 

January 1, 2002. Except as provided in 

paragraph (i)(2) of this section, 

paragraphs (a) through (h) of this section 

apply to contributions in taxable years 

beginning on or after January 1, 2004. 

(2) Increases in applicable dollar 

catch-up limit under section 414(v)(2)— 

(i) Higher limit during the taxable year 

of attainment of age 60 through 63. The 

amendments to section 414(v)(2) made 

by section 109 of Division T of the 

Consolidated Appropriations Act, 2023, 

Public Law 117–328, 136 Stat. 4459 

(2022), known as the SECURE 2.0 Act of 

2022 (SECURE 2.0 Act) to provide for a 

higher applicable dollar catch-up limit 

for individuals who attain age 60, 61, 

62, or 63 during the taxable year apply 

to contributions in taxable years 

beginning after December 31, 2024. 

Paragraphs (c)(2)(i)(B), (c)(2)(ii)(B), and 

(c)(2)(iii)(B) of this section apply to 

contributions in taxable years beginning 

after [DATE SIX MONTHS AFTER 

DATE OF PUBLICATION OF FINAL 

RULE] (or, at the election of the 

taxpayer, taxable years beginning after 

December 31, 2024). Except as provided 

in paragraph (i)(2)(ii) of this section, for 

taxable years beginning on or before 

December 31, 2024, the applicable 

dollar catch-up limit is determined 

under § 1.414(v)–1(c)(2) as it appeared 

in the April 1, 2024, edition of 26 CFR 

part 1. 

(ii) Higher limit for certain SIMPLE 

plans. The amendments to section 

414(v)(2) made by section 117 of the 

SECURE 2.0 Act to provide for a higher 

applicable dollar catch-up limit for 

certain SIMPLE plans apply to 

contributions in taxable years beginning 

after December 31, 2023. Paragraphs 

(c)(2)(ii)(C) and (c)(2)(iii)(C) of this 

section apply to contributions in taxable 

years beginning after [DATE SIX 

MONTHS AFTER DATE OF 

PUBLICATION OF FINAL RULE] (or, at 

the election of the taxpayer, taxable 

years beginning after December 31, 

2023). For taxable years beginning on or 

before December 31, 2023, the 

applicable dollar catch-up limit for a 

SIMPLE 401(k) plan described in 

section 401(k)(11) or a SIMPLE IRA plan 

described in section 408(p) is 

determined under § 1.414(v)–1(c)(2)(ii) 

as it appeared in the April 1, 2024, 

edition of 26 CFR part 1. 

■ Par. 5. Section 1.414(v)–2 is added to 

read as follows: 

§ 1.414(v)–2 Catch-up contributions 

required to be designated Roth 

contributions under section 414(v)(7). 

(a) Section 414(v)(7) Roth catch-up 

contribution requirement—(1) 

Organization of this section. Paragraphs 

(a)(2) through (5) of this section provide 

general rules relating to the 

requirements of section 414(v)(7). 

Paragraph (b) of this section provides 

certain rules of operation for 

implementing the requirements of 

section 414(v)(7) addressed in this 

paragraph (a). Paragraph (c) of this 

section provides rules relating to the 

treatment of pre-tax catch-up 

contributions that were required to be 

designated Roth contributions under 

section 414(v)(7). Paragraph (d) of this 

section provides examples illustrating 

the application of the rules of this 

section. Paragraph (e) of this section sets 

forth the statutory and regulatory 

effective dates relating to the section 

414(v)(7) Roth catch-up requirement. 

(2) Roth catch-up contribution 

requirement in general. For a taxable 

year beginning on or after January 1, 

2024, if, for the calendar year preceding 

the calendar year in which the taxable 

year begins, a catch-up eligible 

participant in an applicable employer 

plan had wages (as defined in section 

3121(a) for purposes of the taxes 

imposed by sections 3101(a) and 

3111(a), for the year the wages are 

required to be taken into account for 

purposes of chapter 21 of the Code) 

from the employer sponsoring the plan 

(as determined under paragraph (b)(3) of 

this section) that exceeded the 

applicable Roth catch-up wage 

threshold, then § 1.414(v)–1(a)(1) 

applies only if that participant’s catchup contributions (as described in 

§ 1.414(v)–1(a)(1)) under the plan are 

designated Roth contributions (as 

defined in section 402A(c)(1)). The Roth 

catch-up wage threshold that applies for 


ddrumheller on DSK120RN23PROD with PROPOSALS1
2658 Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 

a calendar year is $145,000, as adjusted 

for changes in the cost of living under 

paragraph (a)(3) of this section. 

(3) Cost-of-living adjustment. For a 

calendar year beginning after December 

31, 2024, the applicable Roth catch-up 

wage threshold in paragraph (a)(2) of 

this section is the initial amount 

($145,000), increased for changes in the 

cost of living. The increase is made at 

the same time and in the same manner 

as adjustments under section 415(d), 

except that the base period is the 

calendar quarter beginning July 1, 2023, 

and any increase that is not a multiple 

of $5,000 is rounded to the next lower 

multiple of $5,000. 

(4) Certain plans not subject to section 

414(v)(7). Paragraph (a)(2) of this section 

does not apply to a plan described in 

section 408(k) or (p). 

(5) Availability of designated Roth 

catch-up contributions—(i) In general. 

Except as provided in paragraph 

(a)(5)(ii) of this section, if, under an 

applicable employer plan, any catch-up 

eligible participant who is subject to the 

Roth catch-up requirement under 

paragraph (a)(2) of this section is 

permitted to make catch-up 

contributions as designated Roth 

contributions for a plan year, then all 

catch-up eligible participants in the 

plan must be permitted to make catchup contributions as designated Roth 

contributions for the plan year. 

(ii) Special rule for participants 

subject to the Puerto Rico Code. In the 

case of a catch-up eligible participant 

who is subject to the Roth catch-up 

requirement under paragraph (a)(2) of 

this section and is subject to section 

1081.01 of the Puerto Rico Internal 

Revenue Code of 2011 (13 L.P.R.A. 

section 30391), as amended (Puerto Rico 

Code), paragraph (a)(5)(i) of this section 

is treated as satisfied if, under the 

applicable employer plan, that 

participant is permitted to make catchup contributions as after-tax 

contributions within the meaning of 

section 1081.01(a)(15) of the Puerto Rico 

Code. 

(b) Rules of operation—(1) 

Determination of catch-up contributions 

subject to section 414(v)(7) Roth 

requirement. For a participant who is 

subject to the Roth catch-up 

requirement under paragraph (a)(2) of 

this section for a plan year, an elective 

deferral that, in accordance with 

§ 1.414(v)–1(c)(3), is treated as a catchup contribution at the time of deferral 

(for example, an elective deferral that is 

a catch-up contribution because it 

exceeds the section 401(a)(30) limit on 

elective deferrals) is required to be a 

designated Roth contribution only to the 

extent the participant has not previously 

made elective deferrals that are 

designated Roth contributions during 

the calendar year or taxable year equal 

to the applicable dollar catch-up limit 

under § 1.414(v)–1(c)(2). Thus, for 

example, if a participant who is subject 

to the Roth catch-up requirement under 

paragraph (a)(2) of this section has 

already made elective deferrals that are 

designated Roth contributions during 

the calendar year that equal or exceed 

the applicable dollar catch-up limit at 

the time the participant’s elective 

deferrals reach the section 401(a)(30) 

limit on elective deferrals, section 

414(v)(7) would not require the 

participant’s subsequent elective 

deferrals for the calendar year to be 

designated Roth contributions even 

though they are treated as catch-up 

contributions under § 1.414(v)–1(c)(3). 

(2) Treatment of plans without 

qualified Roth contribution programs— 

(i) In general. For purposes of 

§ 1.414(v)–1(e)(1)(iii), if an applicable 

employer plan does not include a 

qualified Roth contribution program 

(within the meaning of section 402A(b)), 

then, for a catch-up eligible participant 

who is subject to the Roth catch-up 

requirement under paragraph (a)(2) of 

this section, the maximum amount of 

catch-up contributions permitted under 

section 414(v) is $0. Such a plan does 

not fail to satisfy the universal 

availability requirement of § 1.414(v)– 

1(e) merely because the plan (or another 

applicable employer plan maintained by 

the employer that does not include a 

qualified Roth contribution program) 

does not permit catch-up contributions 

for participants who are subject to the 

Roth catch-up requirement under 

paragraph (a)(2) of this section. 

(ii) Application of nondiscrimination 

requirements. If an applicable employer 

plan is described in paragraph (b)(2)(i) 

of this section, then § 1.414(v)–1(d)(4) 

does not apply to the plan. As a result, 

a plan that has one or more highly 

compensated employees (as defined in 

section 414(q)) who are not subject to 

the Roth catch-up requirement under 

paragraph (a)(2) may need to preclude 

one or more of those highly 

compensated employees from making 

catch-up contributions to facilitate 

satisfaction of § 1.401(a)(4)–4 with 

respect to the availability of catch-up 

contributions. In such a case, the plan 

is not treated as failing to satisfy the 

universal availability requirement of 

§ 1.414(v)–1(e) merely because of that 

preclusion. 

(3) Determination of employer 

sponsoring the plan. For purposes of 

determining the employer sponsoring 

the plan with respect to a catch-up 

eligible participant, the employer is the 

participant’s common law employer. 

Thus, for purposes of this section, the 

employer sponsoring the plan does not 

include other entities that are treated as 

a single employer with a catch-up 

eligible participant’s common law 

employer under section 414(b), (c), (m), 

or (o). 

(4) Plans with more than one 

employer sponsoring the plan. If an 

applicable employer plan has more than 

one employer sponsoring the plan (that 

is, the plan is sponsored by multiple 

employers that are aggregated under 

section 414(b), (c), (m), or (o), or is a 

multiple employer plan or a 

multiemployer plan), a catch-up eligible 

participant’s wages for the preceding 

calendar year from one employer 

sponsoring the plan are not aggregated 

with the wages from another employer 

sponsoring the plan for purposes of 

determining whether the participant’s 

wages for the preceding calendar year 

exceeded the applicable Roth catch-up 

wage threshold in paragraph (a)(2) of 

this section. Furthermore, even if a 

catch-up eligible participant’s wages for 

the preceding calendar year from one 

employer sponsoring the plan exceeded 

the applicable Roth catch-up wage 

threshold in paragraph (a)(2) of this 

section, elective deferrals made from the 

participant’s compensation from 

another employer sponsoring the plan 

that are catch-up contributions would 

not be required to be designated Roth 

contributions unless the participant’s 

wages for the preceding calendar year 

from that other employer also exceeded 

that wage threshold. 

(c) Treatment of pre-tax catch-up 

contributions that are required to be 

designated Roth contributions—(1) 

General rule. Subject to paragraph (c)(3) 

of this section, a pre-tax elective deferral 

in excess of an applicable limit 

described in § 1.414(v)–1(b)(1) that, in 

accordance with paragraph (a)(2) of this 

section, is a catch-up contribution only 

if it is a designated Roth contribution 

does not cause an applicable employer 

plan to fail to satisfy any requirement of 

the Internal Revenue Code if the failure 

to be a designated Roth contribution is 

corrected in accordance with paragraph 

(c)(2) of this section. 

(2) Correction of section 414(v)(7) 

failures—(i) In general. For purposes of 

this paragraph (c), if an elective deferral 

that exceeds a statutory limit, employerprovided limit, or ADP limit (as such 

terms are defined in § 1.414(v)–1(b)(1)) 

fails to be a catch-up contribution under 

section 414(v)(1) because the elective 

deferral is not a designated Roth 

contribution, then the failure to satisfy 

section 414(v)(7) is referred to as a 

‘‘section 414(v)(7) failure’’ and may be 


ddrumheller on DSK120RN23PROD with PROPOSALS1
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corrected in accordance with this 

paragraph (c)(2). A plan may provide for 

either of the correction methods 

described in paragraphs (c)(2)(ii) and 

(iii) of this section, but with respect to 

a plan year, the plan must apply the 

same correction method for all 

participants with elective deferrals in 

excess of the same applicable limit. 

(ii) Permitted correction on Form W– 

2. A plan may correct a section 414(v)(7) 

failure by transferring the catch-up 

contribution (adjusted for earnings and 

losses) from the participant’s pre-tax 

account to the participant’s designated 

Roth account and reporting the 

contribution (not adjusted for earnings 

and losses) as an elective deferral that 

is a designated Roth contribution on the 

participant’s Form W–2 (Wage and Tax 

Statement) for the year in which the 

elective deferral was originally excluded 

from the participant’s gross income. 

However, this correction method may be 

used only if the participant’s Form W– 

2 for that year has not been filed or 

furnished to the participant. 

(iii) Permitted correction by in-plan 

Roth rollover. As an alternative to the 

correction method permitted under 

paragraph (c)(2)(ii) of this section, a 

plan may correct a section 414(v)(7) 

failure by directly rolling over the catchup contribution (adjusted for earnings 

and losses) from the participant’s pretax account to the participant’s 

designated Roth account, in accordance 

with section 402A(c)(4)(E), and 

reporting the amount of the in-plan Roth 

rollover on Form 1099–R (Distributions 

from Pensions, Annuities, Retirement or 

Profit-Sharing Plans, IRAs, Insurance 

Contracts, etc.) for the year of the 

rollover. 

(3) General correction requirements— 

(i) Practices and procedures. For a plan 

to be eligible to use either of the 

correction methods described under 

paragraph (c)(2) of this section with 

respect to an elective deferral that is a 

catch-up contribution because it 

exceeds a statutory limit described in 

§ 1.414(v)–1(b)(1)(i), the plan sponsor or 

plan administrator must have in place 

practices and procedures designed to 

result in compliance with section 

414(v)(7) at the time the elective deferral 

is made. As part of these practices and 

procedures, the plan must provide that 

the elective deferrals of a participant 

who is subject to the Roth catch-up 

requirement under paragraph (a)(2) of 

this section, but who has not made an 

affirmative election to make catch-up 

contributions as designated Roth 

contributions nor made designated Roth 

contributions equal to the applicable 

dollar catch-up limit earlier in a 

calendar year, are automatically treated 

as designated Roth contributions after 

the participant’s pre-tax elective 

deferrals made during the calendar year 

equal the section 401(a)(30) limit on 

elective deferrals for the taxable year 

that begins in the calendar year. 

Similarly, the elective deferrals of such 

a participant who has not made an 

affirmative election to make catch-up 

contributions as designated Roth 

contributions nor made designated Roth 

contributions equal to the applicable 

dollar catch-up limit earlier in the 

limitation year must be automatically 

treated as designated Roth contributions 

after the participant’s pre-tax elective 

deferrals result in the participant’s 

annual additions for the limitation year 

exceeding the section 415(c) limit for 

the limitation year. 

(ii) Reliance on Form W–2. A plan 

sponsor or plan administrator does not 

fail to have in place practices and 

procedures in accordance with 

paragraph (c)(3)(i) of this section merely 

because a plan determines the 

applicability of the section 414(v)(7)(A) 

Roth catch-up requirement to a 

participant on the basis of a timely-filed 

Form W–2 with respect to the 

participant. 

(iii) Deadlines for corrections of 

section 414(v)(7) failures under 

paragraph (c)(2) of this section—(A) 

Elective deferrals in excess of a statutory 

limit. If the section 414(v)(7) failure 

arises with respect to an elective 

deferral that is a catch-up contribution 

because it exceeds the section 401(a)(30) 

limit on elective deferrals, the deadline 

to complete all corrective steps required 

under paragraph (c)(2) of this section in 

order to avoid a qualification failure is 

April 15 of the calendar year following 

the calendar year for which the elective 

deferral was made. If the section 

414(v)(7) failure arises with respect to 

an elective deferral that is a catch-up 

contribution because it results in the 

participant’s annual additions for the 

limitation year exceeding the section 

415(c) limit, the deadline to complete 

the corrective steps required under 

paragraph (c)(2) of this section in order 

to avoid a qualification failure is the 

deadline that applies under § 1.415(c)– 

1(b)(6) for allocating amounts to the 

limitation year for which the elective 

deferral was made. 

(B) Elective deferrals in excess of an 

employer-provided limit. If the section 

414(v)(7) failure arises with respect to 

an elective deferral that is a catch-up 

contribution because it exceeds an 

employer-provided limit as described in 

§ 1.414(v)–1(b)(1)(ii), the deadline to 

complete the corrective steps required 

under paragraph (c)(2) of this section in 

order to avoid a qualification failure is 

the date that is 21⁄2 months (6 months, 

in the case of an applicable employer 

plan that includes an eligible automatic 

contribution arrangement within the 

meaning of section 414(w)) after the 

close of the plan year for which the 

catch-up contribution was made. 

(C) Elective deferrals in excess of the 

ADP limit. If the section 414(v)(7) failure 

arises with respect to an elective 

deferral that is a catch-up contribution 

because it exceeds the ADP limit, the 

deadline to complete the corrective 

steps required under paragraph (c)(2) of 

this section in order to avoid a 

qualification failure is the date that is 

21⁄2 months (6 months, in the case of an 

applicable employer plan that includes 

an eligible automatic contribution 

arrangement within the meaning of 

section 414(w)) after the close of the 

plan year for which the excess 

contribution was made. 

(d) Examples. The following examples 

illustrate the application of this section. 

For purposes of these examples, assume 

that the participant’s elective deferrals 

under all plans of the employer do not 

exceed the participant’s section 

415(c)(3) compensation, the 

participant’s annual additions for a 

limitation year do not exceed the 

section 415(c) limit, the taxable year of 

the participant is the calendar year, the 

plan includes a qualified Roth 

contribution program, and the plan year 

is the calendar year (except as 

specifically provided). Assume further 

that this section applies to contributions 

in taxable years beginning in 2026, the 

section 401(a)(30) limit on elective 

deferrals for 2026 is $24,000, the 

applicable dollar catch-up limit for 2026 

that is applicable to each participant in 

the examples is $8,000, and the Roth 

catch-up wage threshold to be applied 

to 2025 FICA wages for determining 

applicability of the Roth catch-up 

requirement under section 414(v)(7)(A) 

for a plan year beginning in 2026 is 

$150,000. 

(1) Example 1: Application of Roth 

catch-up wage threshold—(A) Facts. In 

January 2025, Participant A became an 

employee of an accounting firm that is 

structured as a partnership. Through 

October 2025, A had $151,000 of FICA 

wages from the accounting firm. In 

November 2025, Participant A became a 

partner in the accounting firm, and, for 

2025, Participant A had a $30,000 

distributive share of partnership income 

from the accounting firm, all of which 

was self-employment income. 

Participant A is a partner with the 

accounting firm for all of 2026. 

(B) Analysis. Although Participant A 

is a partner with the accounting firm for 

the last two months of 2025 and for all 


ddrumheller on DSK120RN23PROD with PROPOSALS1
2660 Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 

of 2026 (and thus has self-employment 

income rather than FICA wages for that 

period), Participant A had more than 

$150,000 in FICA wages from the 

accounting firm for 2025. Thus, 

Participant A is subject to section 

414(v)(7)(A) for 2026, and if Participant 

A makes elective deferrals in excess of 

an applicable limit for 2026 under a 

plan sponsored by the accounting firm, 

those elective deferrals must be 

designated Roth contributions. 

(2) Example 2: Application of Roth 

catch-up wage threshold—(A) Facts. 

The facts are the same as in paragraph 

(d)(1) of this section (Example 1), except 

that Participant A became a partner of 

the accounting firm in May 2025, and 

had FICA wages from the firm of 

$60,000 before becoming partner. In 

addition, for 2025, Participant A had a 

$150,000 distributive share of 

partnership income from the accounting 

firm, all of which was self-employment 

income. 

(B) Analysis. Although Participant A 

had total compensation of $210,000 for 

the services Participant A performed for 

the accounting firm in 2025, only 

$60,000 of that amount were FICA 

wages. Because Participant A did not 

have more than $150,000 of FICA wages 

from the accounting firm for 2025, any 

elective deferrals in excess of an 

applicable limit that Participant A 

makes for 2026 under a plan sponsored 

by the accounting firm are not required 

to be designated Roth contributions. 

(3) Example 3: Application of section 

414(v)(7)(B) to a plan with a plan year 

other than the calendar year—(A) Facts. 

Participant B participates in an 

applicable employer plan sponsored by 

Employer E. The plan year begins on 

July 1 and ends on June 30. Participant 

B had $155,000 in wages within the 

meaning of section 3121(a) from 

Employer E for calendar year 2025, and 

is a catch-up eligible participant for 

calendar year 2026. For the plan year 

beginning July 1, 2026, and ending June 

30, 2027, the plan allows all catch-up 

eligible participants to make catch-up 

contributions and requires that any 

elective deferrals in excess of an 

applicable limit made by catch-up 

eligible participants who are subject to 

the requirements of section 414(v)(7)(A) 

be designated Roth contributions. 

(B) Analysis. Because Participant B’s 

FICA wages from Employer E for 

calendar year 2025 exceeded $150,000, 

Participant B is subject to the 

requirements of section 414(v)(7)(A) for 

the first half of the plan year beginning 

July 1, 2026, and any catch-up 

contributions that Participant B makes 

under the plan during that period must 

be designated Roth contributions. 

Because Participant B is permitted to 

make catch-up contributions that are 

designated Roth contributions under the 

plan for the plan year beginning July 1, 

2026 (after Participant B reaches an 

applicable limit (as defined in 

§ 1.414(v)–1(b)(1)), all catch-up eligible 

participants under the plan must be 

permitted to make catch-up 

contributions that are designated Roth 

contributions for the plan year. 

(4) Example 4: Plans with more than 

one employer sponsoring the plan—(A) 

Facts. Employer F and Employer G are 

members of a controlled group of 

corporations within the meaning of 

section 414(b). Participant C was hired 

by Employer F on January 1, 2025, and 

remained employed by Employer F 

through October 31, 2025. Effective 

November 1, 2025, Participant C 

transferred to Employer G and was 

employed by Employer G for the 

remainder of 2025. Participant C is 

employed by Employer G for all of 2026, 

the year in which Participant C attains 

age 55. Employer F reported $155,000 of 

FICA wages on a Form W–2 for 

Participant C for 2025. Employer G 

reported $35,000 of FICA wages on a 

Form W–2 for Participant C for 2025. 

Employers F and G are participating 

employers in a section 401(k) plan, Plan 

P. Participant C becomes eligible to 

participate in Plan P on January 1, 2026, 

and all of Participant C’s elective 

deferrals for 2026 are made from 

compensation paid by Employer G. 

(B) Analysis. Employers F and G are 

common law employers of Participant C 

during different portions of 2025, and, 

under paragraph (b)(3) of this section, 

they are both employers sponsoring the 

plan. Because Participant C’s FICA 

wages from Employer G in 2025 did not 

exceed $150,000, Participant C is not 

subject to the requirements of section 

414(v)(7)(A) with respect to elective 

deferrals that are made from 

compensation paid by Employer G in 

2026. Accordingly, Participant C is not 

required to designate any catch-up 

contributions made for 2026 under Plan 

P as designated Roth contributions. This 

is the case even though Participant C 

had wages from Employer F (an 

employer sponsoring the plan) that 

exceeded $150,000 for 2025. 

(5) Example 5: Correction of section 

414(v)(7) failure—(A) Facts. Participant 

D, who attains age 55 in 2026, 

participates in a section 401(k) plan, 

Plan Q, sponsored by Employer H. Plan 

Q does not limit elective deferrals 

except as necessary to comply with 

sections 401(a)(30) and 415(c). Plan Q 

does not provide catch-up eligible 

participants with a separate election for 

elective deferrals that are in excess of 

the section 401(a)(30) limit and provides 

that such a participant is permitted to 

defer amounts in excess of the section 

401(a)(30) limit on elective deferrals up 

to the applicable dollar catch-up limit 

for the year. For 2025, Participant D had 

$151,000 in wages (within the meaning 

of section 3121(a)) from Employer H. 

For 2026, Participant D elects to defer 

$1,250 into Participant D’s account in 

Plan Q for each of 24 pay periods. 

Employer H has in place practices and 

procedures that are designed to prevent 

section 414(v)(7) failures and to result in 

compliance with the section 414(v)(7) 

Roth catch-up requirement at the time 

an elective deferral is made, and Plan Q 

provides for a deemed Roth catch-up 

election as described in paragraph 

(c)(3)(i) of this section. Nonetheless, 

Employer H discovers that all of 

Participant D’s elective deferrals under 

Plan Q during 2026 (a total of $30,000) 

were pre-tax elective deferrals. 

(B) Analysis. Because Participant D 

had over $150,000 in wages from 

Employer H for 2025, under section 

414(v)(7)(A), Participant D’s catch-up 

contributions under Plan Q for 2026 

(that is, the elective deferrals that 

exceed the section 401(a)(30) limit) are 

required to be designated Roth 

contributions. Thus, $6,000 of 

Participant D’s elective deferrals for 

2026 (that is, the elective deferrals in 

excess of the section 401(a)(30) limit of 

$24,000) are required to be designated 

Roth contributions. To keep these 

contributions in the plan, Employer H 

must correct the section 414(v)(7) failure 

with respect to $6,000 of Participant D’s 

pre-tax elective deferrals for 2026, using 

one of the methods set forth under 

paragraph (c)(2) of this section, by April 

15, 2027 (the deadline under paragraph 

(c)(3)(iii)(A) of this section). 

(6) Example 6: Designated Roth 

contributions that can satisfy the section 

414(v)(7) Roth catch-up requirement— 

(A) Facts. The facts are the same as in 

paragraph (d)(5) of this section 

(Example 5), except that the first $5,000 

of the $30,000 total elective deferrals 

Participant D makes for 2026 are 

designated Roth contributions. (Thus, 

during each of the first 4 pay periods in 

2026, Participant D makes $1,250 of 

elective deferrals that are designated 

Roth contributions, and then 

subsequently makes $25,000 in pre-tax 

elective deferrals ratably over the 

remaining 20 pay periods.) Participant D 

reaches the section 401(a)(30) limit on 

elective deferrals during the twentieth 

pay period of 2026 and does not make 

any designated Roth contributions after 

reaching the section 401(a)(30) limit on 

elective deferrals in 2026. 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 90, No. 7 / Monday, January 13, 2025 / Proposed Rules 2661 

(B) Analysis. In accordance with 

paragraph (b)(1) of this section, the 

$5,000 in elective deferrals that are 

designated Roth contributions that 

Participant D made at the beginning of 

2026 can be taken into account for 

purposes of satisfying Participant D’s 

Roth catch-up requirement under 

section 414(v)(7). Thus, the portion of 

Participant D’s pre-tax elective deferrals 

that are required to be corrected is 

$1,000 ($6,000 of elective deferrals that 

are in excess of the section 401(a)(30) 

limit, minus $5,000 of elective deferrals 

that were made as designated Roth 

contributions within the taxable year), 

and Employer H must correct the 

section 414(v)(7) failure with respect to 

only $1,000 of Participant D’s pre-tax 

elective deferrals. To keep the $1,000 in 

the plan, Employer H must correct the 

section 414(v)(7) failure using one of the 

methods set forth under paragraph (c)(2) 

of this section, by April 15, 2027 (the 

deadline under paragraph (c)(3)(iii)(A) 

of this section). 

(e) Applicability dates—(1) Statutory 

applicability date. Section 414(v)(7) 

applies to contributions in taxable years 

beginning after December 31, 2023. 

(2) Regulatory applicability dates—(i) 

General rule. Except as provided in 

paragraphs (e)(2)(ii) and (iii) of this 

section, this section applies to 

contributions in taxable years beginning 

after [DATE SIX MONTHS AFTER 

DATE OF PUBLICATION OF FINAL 

RULE]. 

(ii) Collectively bargained plans. In 

the case of an applicable employer plan 

maintained pursuant to one or more 

collective bargaining agreements, 

paragraphs (a) through (d) of this section 

shall not apply until the first taxable 

year described in paragraph (e)(2)(i) of 

this section, or, if later, the first taxable 

year beginning after the date on which 

the last collective bargaining agreement 

related to the plan that is in effect on 

December 31, 2025, terminates 

(determined without regard to any 

extension to those agreements). 

(iii) Early implementation permitted. 

A plan is permitted to apply the rules 

of this section to contributions in any 

taxable year beginning after December 

31, 2023. 

Douglas W. O’Donnell, 

Deputy Commissioner. 

[FR Doc. 2025–00350 Filed 1–10–25; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2024–0059; FRL–11682–11– 

OCSPP] 

Receipt of a Pesticide Petition Filed for 

Residues of Pesticide Chemicals in or 

on Various Commodities (November 

2024) 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Notification of filing of petition 

and request for comment. 

SUMMARY: This document announces the 

Agency’s receipt of an initial filing of a 

pesticide petition requesting the 

establishment or modification of 

regulations for residues of pesticide 

chemicals in or on various commodities. 

DATES: Comments must be received on 

or before February 12, 2025. 

ADDRESSES: Submit your comments, 

identified by docket identification (ID) 

number EPA–HQ–OPP–2024–0059, 

through the Federal eRulemaking Portal 

at https://www.regulations.gov. Follow 

the online instructions for submitting 

comments. Do not submit electronically 

any information you consider to be 

Confidential Business Information (CBI) 

or other information whose disclosure is 

restricted by statute. Additional 

instructions on commenting and visiting 

the docket, along with more information 

about dockets generally, is available at 

https://www.epa.gov/dockets. 

FOR FURTHER INFORMATION CONTACT: 

Anita Pease, Antimicrobials Division 

(AD) (7510P), main telephone number: 

(202) 566–0736; email address: 

ADFRNotices@epa.gov or Charles 

Smith, Registration Division (RD) 

(7505T), main telephone number: (202) 

566–1030, email address: 

RDFRNotices@epa.gov. The mailing 

address for each contact person is Office 

of Pesticide Programs, Environmental 

Protection Agency, 1200 Pennsylvania 

Ave. NW, Washington, DC 20460–0001. 

As part of the mailing address, include 

the contact person’s name, division, and 

mail code. 

SUPPLEMENTARY INFORMATION: 

I. General Information 

A. Does this action apply to me? 

You may be potentially affected by 

this action if you are an agricultural 

producer, food manufacturer, or 

pesticide manufacturer. The following 

list of North American Industrial 

Classification System (NAICS) codes is 

not intended to be exhaustive, but rather 

provides a guide to help readers 

determine whether this document 

applies to them. Potentially affected 

entities may include: 

• Crop production (NAICS code 111). 

• Animal production (NAICS code 

112). 

• Food manufacturing (NAICS code 

311). 

• Pesticide manufacturing (NAICS 

code 32532). 

B. What should I consider as I prepare 

my comments for EPA? 

1. Submitting CBI. Do not submit this 

information to EPA through 

regulations.gov or email. Clearly mark 

the part or all of the information that 

you claim to be CBI. For CBI 

information in a disk or CD–ROM that 

you mail to EPA, mark the outside of the 

disk or CD–ROM as CBI and then 

identify electronically within the disk or 

CD–ROM the specific information that 

is claimed as CBI. In addition to one 

complete version of the comment that 

includes information claimed as CBI, a 

copy of the comment that does not 

contain the information claimed as CBI 

must be submitted for inclusion in the 

public docket. Information so marked 

will not be disclosed except in 

accordance with procedures set forth in 

40 CFR part 2. 

2. Tips for preparing your comments. 

When preparing and submitting your 

comments, see the commenting tips at 

https://www.epa.gov/dockets/ 

comments.html. 

3. Environmental justice. EPA seeks to 

achieve environmental justice, the fair 

treatment and meaningful involvement 

of any group, including minority and/or 

low-income populations, in the 

development, implementation, and 

enforcement of environmental laws, 

regulations, and policies. To help 

address potential environmental justice 

issues, the Agency seeks information on 

any groups or segments of the 

population who, as a result of their 

location, cultural practices, or other 

factors, may have atypical or 

disproportionately high and adverse 

human health impacts or environmental 

effects from exposure to the pesticides 

discussed in this document, compared 

to the general population. 

II. What action is the Agency taking? 

EPA is announcing receipt of a 

pesticide petition filed under section 

408 of the Federal Food, Drug, and 

Cosmetic Act (FFDCA), 21 U.S.C. 346a, 

requesting the establishment or 

modification of regulations in 40 CFR 

part 180 for residues of pesticide 

chemicals in or on various food 

commodities. The Agency is taking 

public comment on the request before 


ddrumheller on DSK120RN23PROD with PROPOSALS1