ThinkAdvisor Quotes Brad Campbell on Roth Reviews With Retirement Plan Clients

In “Time for a ‘Roth Review’ With Retirement Plan Clients,” ThinkAdvisor spoke to benefits and executive compensation partner Brad Campbell about how advisers should schedule Roth conversations with each of their retirement plan clients.

Campbell explained that before SECURE 2.0, “plans had the option of allowing employees to elect that employee contributions be made on a Roth basis. Some plans adopted this provision; most did not.” SECURE 2.0 “expanded that to give plans the option to allow employees to elect to receive both employee and employer contributions on a Roth basis,” he continued.

Further, SECURE 2.0 “mandated that employees receiving more than $145,000 in Federal Insurance Contributions Act wages could only make catch-up contributions on a Roth basis — no traditional, pretax catch-up for these workers is allowed after Jan. 1, 2026 (the statute says Jan. 1, 2024, but the Internal Revenue Service guidance permits an additional two-year transition period),” Campbell noted.

“It is time for plans to revisit Roth and decide if they want to add the optional provisions because they are going to have to address the mandatory provision,” Campbell said. He concluded that advisers “are going to play a key role in helping plans assess how to address these Roth issues.”

The full article is available for ThinkAdvisor subscribers.