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NAGDCA Seeks More Time for Government Plans to Implement SECURE 2.0 Roth Catch-Up Rule 

NAGDCA Seeks More Time for Government Plans to Implement SECURE 2.0 Roth Catch-Up Rule 

The National Association of Government Defined Contribution Administrators (NAGDCA) has renewed its call for more time to comply with SECURE 2.0’s Section 603, one of the law’s most complicated provisions requiring certain catch-up contributions to be made as Roth contributions. 

In a letter to Treasury and the IRS, NAGDCA requested that governmental plans receive the same implementation relief granted to collectively bargained plans earlier this year. While the IRS previously delayed the effective date to December 31, 2025, NAGDCA says that government plans face added hurdles, including state law updates, payroll system modifications, and collective bargaining adjustments. 

“Although governmental plans have been working diligently to be ready for 2026, because final regulations have not been issued, many are waiting on final regulations to complete their implementation steps,” wrote NAGDCA executive director Matt Petersen. 

The group warned that without further extensions, some government plans may be forced to suspend catch-up contributions altogether until compliance systems are in place. 

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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