The end of 2025 brings two important deadlines and dates for employers that sponsor 401(k) plans, 403(b) plans, governmental 457(b) plans, and group health plans.
401(k), 403(b), Governmental 457(b) Plans: Catch-Up Contributions for Certain Participants Must be Made as Roth Contributions
Beginning January 1, 2026, participants with prior year FICA wages greater than $150,000 (as adjusted for inflation in future years) who wish to make age 50 catch-up contributions and/or age 60-63 super-catch-up contributions) must do so on a Roth contribution basis. The IRS has issued final regulations with many details regarding implementation of this requirement. The regulations become effective January 1, 2027. For 2026, good faith compliance is required. For more information on this new retirement plan requirement, please see a prior client alert issued by Venable’s Employee Benefits and Executive Compensation Group here.
Group Health Plans: Gag Clause Attestation
Each year, group health plans must attest that their agreements with providers, networks, and third-party administrators do not contain “gag clauses.” Gag clauses are contractual provisions that, among other things, would prohibit the plan from disclosing health care provider pricing and quality information to the plan’s participants or service providers. The attestation requirement does not apply to “excepted benefits,” such as stand-alone vision or dental plans, employee assistance programs, and most health flexible spending accounts.
The deadline for submitting the gag clause attestation is December 31, 2025. Generally, employers and other sponsors of self-funded group health plans must submit the attestation on the plan’s behalf. However, a third-party administrator may submit the attestation on the plan’s behalf if a written agreement permits them to do so. The attestation must be submitted to the Center for Medicare and Medicaid Services (CMS), through its Health Insurance Oversight System. CMS has created an online resource page with instructions for submitting the attestation here.
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If you have questions or concerns regarding this client alert, please contact the authors, any member of Venable's Employee Benefits and Executive Compensation Group, or your regular Venable lawyer.