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Mike Hadley Comments on the Need for IRS Guidance on SECURE 2.0 Provisions with Law360

Davis & Harman Partner, Mike Hadley, was recently featured in the Law360 article, “5 Issues Benefits Attys Want the Gov’t to Shed Light On,” where he discussed the need for additional guidance on the SECURE 2.0 provision requiring highly compensated employees to make age-based catch-up contributions on a Roth basis, and the newly established Saver’s Match.

Law360’s article focused on five areas that attorneys are hoping for, or expecting, guidance or regulations from the Trump Administration.  Among the list of priorities, the article details that attorneys are seeking guidance on cryptocurrency investments in 401(k) plans, ESG investing, SECURE 2.0 implementation, gender-affirming care in the Affordable Care Act, and ESOP valuations.

In regard to SECURE 2.0 guidance on the implementation of Roth age-based catch-up contributions, Mike Hadley is quoted to say:

“We need those final regs and we also need the IRS to confirm that they’re not going to provide another [effective date] extension. . . I don’t think they will, but I would love to hear something official on that.”

Hadley is further quoted in the article regarding the Saver’s Match established by SECURE 2.0. Hadley says that:

“[the Saver’s Match] is the most complicated and impactful SECURE 2.0 provision,” that will require coordination between the IRS, 401(k) and 403(b) plans, and IRA service providers.  He continued that “Money is going to be transferring from Treasury into people’s accounts and, you know, that’s something that cannot be built in a day. We need guidance on that.”

A link to the full article can be found here.

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