Effective 2024 457 Catch Changes

[former_member300128]

Good morning,

Not sure if SAP will be suppling a note for the following change for this new regulation effective January 1, 2024 or if a user exit/Enhancement will need to be done to meet the IRS requirements listed below. Trying to see how we are going to check previous year's earnings to switch from Catch up to Roth Catch up for anyone over 50.

IRS has a new regulation, beginning in 2024, the catch-up contribution game is going to completely change for high wage earners. Starting in 2024, if you are age 50 or older, and you made more than $145,000 in WAGES in the PREVIOUS tax year with the SAME employer, you would be forced to make your catch-up contributions in ROTH dollars to your QUALIFIED retirement plan.

[jwiblepasshe22]

Sandra, below (and at the link) is the most recent update from the SAP Benefits Product Manager on June 21st:

/blogs.sap.com/2019/10/14/taxfactory-11.0

"As I just mentioned to Jeff (separately), we are analyzing the requirements of the Secure 2.0 Act at our end and hope to have the requirements published in the SAP Legal Change Notification as a Service portal over the next few weeks. Hence, I would request you to please keep a lookout there."

Kind Regards,
Attreyee

Product Manager, SAP OnPremise Benefits Management