• Spring 2025 Agenda Update
  The Spring Unified Agenda of Federal Regulatory and Deregulatory Actions was recently released and includes items impacting retirement plans.
• Catch-Up Contributions Final Regulations
  Final regulations issued for catch-up contribution changes that support the updates covered within SECURE 2.0.
• Disaster Relief for Wisconsin
  The IRS and PBGC have issued disaster relief for businesses and individuals impacted by severe storms, straight-line winds, flooding, and mudslides in Wisconsin.

On September 4, 2025, the Trump Administration released the Spring edition of the Unified Agenda of Regulatory and Deregulatory Actions. This provides awareness of key issues expected to be the subject of formal guidance. Although the deadlines proposed within the agenda may be pushed back or cancelled altogether, this provides insight into the priorities and activities expected in the coming months. Highlighted below are agenda items with potential retirement plan impacts.

Internal Revenue Service / Treasury

Proposed Rule Stage

• Section 415(c) Definition of Compensation Relating to Back Pay
• Rollovers from Qualified Tuition Programs under Section 529 to Roth IRAs
• Reporting and Notice Requirements for Deferred Vested Benefits
• Definition of Church Plan
• Safe Harbor Rules Relating to Required Distributions, Missing Participants, and Uncashed Checks

Final Rule Stage

• Automatic Enrollment Requirements
• SECURE 2.0 Updates to Required Minimum Distribution Rules
• Long-Term, Part-time Employee Rules for Cash or Deferred Arrangements Under Section 401(k)
• Rules Relating to the Use of Electronic Media to Make Participant Elections and Spousal Consents

Department of Labor / Employee Benefits Security Administration

Proposed Rule Stage

• Requirement to Provide Paper Statements in Certain Cases / Amendments to Electronic Disclosure Safe Harbors
• Review of Pension Risk Transfer Interpretive Bulletin 95-1
• Requirements Related to Advanced Explanation of Benefits and Other Provisions Under the Consolidated Appropriations Act, 2021
• Plan Reporting for Retirement Savings Lost and Found

Final Rule Stage

• Investment Advice Fiduciary Under ERISA
• Exemption for Certain Automatic Portability Transactions

The Department of Treasury and the Internal Revenue Service (IRS) issued final catch-up regulations that support the updates covered within SECURE 2.0 Act of 2022 (SECURE 2.0). These regulations impact 401(k), 403(b), governmental 457(b) (collectively, Retirement Plans), SARSEP, SIMPLE IRA, and SIMPLE 401(k) plans.

Background

SECURE 2.0 made changes that required Retirement Plan participants with prior-year FICA wages over $145,000 (adjusted for inflation) to make age-based catch-up contributions on a Roth basis only. Additionally, plans could allow a higher catch-up limit for Retirement Plan participants who attain age 60 through 63 during the calendar year.

On January 13, 2025, the IRS issued proposed catch-up contribution regulations. Below are a few of the changes noted within the proposed regulations:

• FICA wages are defined generally as the FICA taxes imposed by Social Security tax, and not by Medicare tax.
• Retirement Plans may include a “deemed” Roth election for impacted employees and must allow for an effective opportunity to elect out of making catch-up contributions.
• Retirement Plans that do not allow for Roth contributions may not offer catch-up contributions for employees who make over the $145,000 threshold.
• There are two possible correction methods for Retirement Plans that fail to satisfy the Roth catch-up contribution provisions; however, the plan must include deemed Roth election language.
• Retirement Plans, SARSEP, SIMPLE IRA, and SIMPLE 401(k) plans are not required to offer the higher catch-up for ages 60 to 63.
• Plans that offer higher catch-up for ages 60 to 63 may not limit catch-up contributions only to those employees.

Final Regulation Updates

Generally, proposed regulations were adopted; however, highlighted below are a few points of clarification within the final regulations issued on September 16, 2025:

• Wages
  • Determined based on prior year FICA wages as reported in Box 3 of Form W-2.
  • Retirement Plans that used Box 5 of Form W-2 are deemed to use a good faith interpretation until January 1, 2027.
  • Self-employment income, subject to SECA taxes, is not counted for this purpose.
  • Wages are not required to be aggregated between employers, but aggregation is permitted for employers who are members of a common control group or employers using a common paymaster.
• Retirement Plans that permit a participant to make an election during each payroll period to treat a portion of their elective deferrals as catch-up (referred to as a separate election plan) are not required under a deemed Roth election to recharacterize that money to a pre-tax deferral even if it’s later determined that the money isn’t eligible for catch-up.
• Plans may allow deemed elections for Roth catch-up contributions to be effective only when
  • Pre-tax deferrals reach the contribution limit imposed under Internal Revenue Code section 402(g) or
  • When both the pre-tax and Roth deferrals reach the limit.
• Corrections for plans that fail the Roth catch-up contribution provisions are not required if:
  • The amount is less than $250 or
  • The participant became subject to the Roth requirement due to an amended Form W-2 increasing FICA wages over $145,000 in the prior year that is issued after the deadline for correction.

Effective Dates

Final regulations are generally effective January 1, 2027. The effective date of the final regulations does not extend the necessary implementation of the Roth catch-up requirement (generally January 1, 2026). From January 1, 2026, through December 31, 2026, a reasonable, good faith interpretation must be followed. Later implementation dates may apply to collectively bargained or governmental plans.