Source: https://www.irs.gov/pub/irs-drop/n-23-62.pdf#page=4
Pages 4-5, text extracted with pdftotext (poppler), reading order.

excess of the applicable dollar amount under section 402(g)(1)(B) 1 to the extent that the
amount of those elective deferrals does not exceed the applicable dollar amount under
section 414(v)(2)(B)(i) 2 for the taxable year (without regard to the treatment of the
elective deferrals by an applicable employer plan under section 414(v)).
Section 603(b)(2) of the SECURE 2.0 Act amends section 457(e)(18)(A)(ii) of the
Code to replace “the applicable dollar amount for the taxable year determined under
section 414(v)(2)(B)(i), or” with “the lesser of any designated Roth contributions made
by the participant to the plan or the applicable dollar amount for the taxable year
determined under section 414(v)(2)(B)(i), or”.
Section 603(c) of the SECURE 2.0 Act provides that the amendments made by
section 603 apply to taxable years beginning after December 31, 2023.
III. GUIDANCE ON SECTION 603 OF THE SECURE 2.0 ACT
A. Catch-Up Contributions for Taxable Years Beginning After December 31, 2023
Pursuant to section 414(v)(1), an applicable employer plan is not treated as
failing to meet any requirement of the Code solely because the plan permits an eligible
participant to make catch-up contributions under section 414(v) in any plan year.
Accordingly, for taxable years beginning after December 31, 2023, an applicable
employer plan may permit an eligible participant to make elective deferrals under the
plan that exceed the applicable dollar amount under section 402(g)(1)(B) (or deferrals
under the plan that exceed the applicable dollar amount under section 457(e)(15)) if
those contributions in excess of the applicable dollar amount satisfy the requirements

1

The applicable dollar amount under section 402(g)(1)(B) is $22,500 for 2023.

2

The applicable dollar amount under section 414(v)(2)(B)(i) is $7,500 for 2023.

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under section 414(v) for catch-up contributions. The elimination of section 402(g)(1)(C)
of the Code under section 603(b)(1) of the SECURE 2.0 Act does not change this result
for taxable years beginning after December 31, 2023. 3
If an eligible participant is subject to the requirements of section 414(v)(7)(A),
then any catch-up contributions that are made to the plan on behalf of the participant
must be designated as Roth contributions. However, if an eligible participant is not
subject to the requirements of section 414(v)(7)(A), then any catch-up contributions that
are made to the plan on behalf of the participant are not required to be designated as
Roth contributions. In that case, any catch-up contributions under section 414(v) that
are made to the plan on behalf of the participant that are not designated as Roth
contributions are not includible in the participant’s gross income under
section 402(g)(1)(A) (and do not exceed the limitation in section 457(b)(2)) because, in
accordance with section 414(v)(3)(A)(i), the limitations on elective deferrals under
sections 401(a)(30) and 403(b) (and the limitation on deferrals under section 457(b)(2))
do not apply to those catch-up contributions.
B. Elective Deferrals Made to Two or More Plans
If an individual makes elective deferrals to two or more plans during a taxable
year (including plans maintained by unrelated employers), then, under section
402(g)(1)(A), those elective deferrals are aggregated for purposes of determining
whether the amount of the individual’s elective deferrals exceeds the applicable dollar
amount under section 402(g)(1)(B). Similarly, an eligible participant’s elective deferrals

Proposed regulations, which were issued before the enactment in 2002 of section 402(g)(1)(C),
permitted catch-up contributions in excess of the applicable dollar amount under section 402(g)(1)(B) or
457(e)(15) for purposes of section 414(v). See proposed § 1.414(v)-1(a)(1) and (b)(1)(i), 66 FR 53555
(the 2001 NPRM).

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