Beginning in January 2024, high-income taxpayers who wish to make catch-up contributions to traditional retirement accounts will be required to characterize those contributions as Roth contributions, rather than pre-tax contributions.  Of course, not all 401(k) and 403(b) sponsors currently offer a Roth contribution option in connection with their traditional plan.  If business owners wish to give their high-income employees the option of taking advantage of the new and expanded catch-up contribution rules, they must proactively amend their plans to include this Roth contribution option.  Employers who want to give high-income taxpayers the option should not wait until the last minute to take action—it’s important for these clients to understand that if they wait until the last minute, it could be too late to offer a catch-up option for 2024.

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