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SECURE 2.0 Drafting Error Could Cause a Change in Retirement Planning
A drafting error baked into the SECURE 2.0 act passed by Congress and signed into law last December would, if not corrected, have an effect on those planning on making catch-up contributions in their employer-sponsored retirement accounts in 2024. Specifically, Section 603 of the Act contains an omission that inadvertently creates an across-the-board ban on catch-up contributions for all taxpayers. The original intent in this section was, according to SmartAsset contributor Eric Reed, to require these contributions to be made on a Roth basis rather than as pre-tax contributions. Check out Reed’s assessment of the mistake and its pathway to correction here.
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