The final regulations are similar to the proposed regulations issued in January, with some changes that the IRS said were made in response to comments.
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Employee Benefits
Proposed regulations issued on retirement catch-up contributions
The rules implement the SECURE 2.0 Act’s changes increasing the contribution limit for individuals age 60 to 63 and requiring that certain highly compensated employees make their catch-up contributions on a Roth basis.
AICPA: Guidance needed on catch-up contributions under Roth mandate
In a letter to Treasury and the IRS, the AICPA requested guidance on language in proposed regulations issued in January.
Apportioning tax benefits among members of a controlled group
Maintaining an apportionment plan among component members can help ensure optimal tax results.
HSA inflation-adjusted maximum contribution amounts for 2026 announced
Rev. Proc. 2025-19 also includes the revised maximum amount that may be made newly available for excepted-benefit health reimbursement arrangements.
AICPA recommends prop. regs. changes for some retirement savings plans
The AICPA submitted comments to Treasury and the IRS with recommended changes to proposed regulations for automatic enrollment requirements for most newly established 401(k) and 403(b) plans under the SECURE 2.0 Act.
Prop. regs. address 401(k), 403(b) automatic enrollment requirement
The proposed regulations provide guidance to plan administrators on implementing the automatic enrollment requirement established by the Secure 2.0 Act.
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
At ERISA’s 50th anniversary, a legacy of IRS-practitioner collaboration
The historic legislation’s enabling of growth and development of qualified retirement plans also launched a new era of public-private cooperation in tax and employee benefits.
Social Security wage base announced for 2025
The Social Security Administration announced an increased maximum amount of wages subject to Social Security tax in 2025. The cost-of-living adjustment for Social Security benefits for 2024 is slightly lower than last year’s COLA.
Sec. 1042 recapture gain determined under installment method
Installment method applies in determining Sec. 1042 gain recapture on an installment sale of stock to ESOP.
IRS seeks comments on SECURE 2.0 saver’s match contributions
Treasury and the IRS issued a notice on saver’s match contributions to be paid by Treasury under provisions of SECURE 2.0.
Employers now have interim guidance on student loans and retirement plans
The IRS provided guidance for sponsors of 401(k) and similar retirement plans that provide matching contributions based on eligible student loan payments made by participating employees.
Melancon: Supreme Court decisions are ‘big deal’ for tax pros
Barry Melancon, CPA, CGMA, AICPA & CIMA’s CEO, said the decisions will create uncertainty for a profession that craves certainty.
Final and proposed regs. issued on retirement plan RMDs
The final regulations reflect changes to the required minimum distribution rules made by the SECURE Act and SECURE 2.0 and generally follow proposed regulations issued in 2022.
Exceptions to penalty on early retirement plan distributions outlined
The IRS issued guidance for exceptions for emergency personal expense distributions and for domestic abuse victim distributions.
HSA inflation-adjusted maximum contribution amounts for 2025 announced
After steep increases for 2024, the HSA maximum contribution amounts allowed by the IRS still increase for 2025, but not by as much, as the rate of inflation slowed.
Establishing a SIMPLE IRA plan for only a few employees
A SIMPLE IRA’s advantages for small companies include relative ease of administration and the ability of owner-employees to make larger contributions.
Tax consequences of employer gifts to employees
Subject to specific exclusions, employers’ awards to employees are generally treated as taxable compensation.
Don’t wait on action on tax bill to file returns, IRS tells taxpayers
With tax season opened as of Monday, Commissioner Danny Werfel said the IRS will handle any necessary changes if a bill passes after returns are filed.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
