IRS Grants Two-Year Extension for High Earners 50+ on 401(k) Rule and Roth Catch-up Contributions

High earners aged 50 and above have been granted a two-year extension by the IRS on a rule that limits the amount of money they can contribute to their 401(k) retirement accounts. The rule, known as the "catch-up contribution," allows individuals aged 50 and above to contribute an additional $6,500 to their 401(k) plans. However, due to the economic impact of the pandemic, the IRS has decided to delay the enforcement of this rule until 2023, providing high earners with more flexibility in saving for retirement.