As the Roth catch-up contributions become effective this month, issues not addressed in the final regulations are coming to light.
Question: Our company completed a statutory merger — how does that impact the Roth catch-up contributions requirement?
Answer: Based on past IRS guidance, it is more than likely that an employee of either company in a statutory merger that was subject to the Roth catch-up contribution requirements of SECURE 2.0 Act prior to the statutory merger will continue to be subject to the Roth catch-up contribution requirements after the merger. Similarly, if the statutory merger occurs midyear, the employee’s compensation for the year of the merger will include compensation paid by either entity.
Continue reading “The Roth Catch-Up Contribution Requirement and a Statutory Merger”