On October 1, 2025, Plan Adviser quoted Lisa Tavares on navigating the new Roth catch-up rules.
According to the article, the IRS has finalized a key rule from the SECURE 2.0 Act: Starting January 1, 2026, employees aged 50 or older who earned over $145,000 in the previous year must make all catch-up contributions as Roth (after-tax) contributions. Regulators will allow flexibility through 2026, with full enforcement beginning in 2027. Industry experts note this rule could bring operational challenges and recommend organizations begin preparing now.
Tavares emphasizes the importance of fine-tuning payroll mechanics sooner rather than later to avoid costly mistakes. “The payroll system has to be set up correctly … [when] the right trigger goes off, so we’re not creating operational errors,” she said. Tavares also cautions that even with the IRS’s good-faith posture, sponsors should not treat 2026 as a test run. “Good-faith compliance means you tried to be compliant the best you could as you went into the year. I don’t think the government intends you to kind of figure it out [in] 2026.”
To access the article, click here.