Congressional Leaders Inform Treasury on SECURE 2.0 Technical Fixes

Congressional leadership from the House Committee on Ways and Means and the Senate Committee on Finance have sent a letter to officials at the Treasury Department indicating that Congress intends to introduce technical correction legislation to correct erroneous statutory language for several SECURE 2.0 provisions in order to accurately carry out Congressional intent. The letter clarifies several provisions, including the following.

  • Clarifies that the small employer tax credit for employer contributions under Section 102 is intended to be in addition to the startup credit otherwise available to employers.
  • Clarifies that the age increase for required minimum distributions to age 75 under Section 107 is intended to be read as applying to individuals who turn age 73 after December 31, 2032.
  • Clarifies that Roth contributions made to a SIMPLE IRA or SEP plan pursuant to Section 601 are not intended to be taken into account for purposes of the otherwise applicable Roth IRA contribution limit.
  • Confirms that the requirement to make catch-up contributions on a Roth basis for taxable years after 2023 for those with wages exceeding $145,000 under Section 603 was not intended to disallow catch-up contributions or modify how the rules apply to employees who participate in plans of unrelated employers.

The letter also indicates that technical correction legislation may include additional items.