The Washington Report
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September 6, 2023
Note to Subscribers
While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Legislative
Congress Reconvenes
Congress returns to the Hill this week after its summer recess.
Retirement
IRS Issues Notice Providing Two-Year Administrative Delay for SECURE 2.0 Roth Catch-Up Provisions
On August 25, 2023, the Internal Revenue Service (IRS) issued Notice 2023-62, which provides a two-year administrative delay for the SECURE 2.0 changes requiring Roth treatment of defined contribution plan catch-up contributions for higher earners. Specifically, for taxable years beginning before January 1, 2026, catch-up contributions will be treated as satisfying the requirements of Code Section 414(v)(7)(A), even if catch-up contributions for those participants earning more than $145,000 in the prior year are not designated as Roth. Further, a plan that does not provide for designated Roth contributions will be treated as satisfying the requirements of Code Section 414(v)(7)(B). Notice 2023-62 also clarifies that all participants who are age 50 or older remain eligible to make catch-up contributions if permitted by the plan. The Notice indicates that the IRS intends to issue further guidance on Section 603 of SECURE 2.0 and lists several specific areas in which guidance is under consideration. Comments and suggestions on the issues addressed in Notice 2023-62 or other areas of guidance must be submitted to the IRS by October 24, 2023.
The news release is available here.
IRS Notice 2023-62 is available here.
Other HR/Employment
DOL Announces NPRM on Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees
On August 30, 2023, the Department of Labor (DOL) announced the issuance of a Notice of Proposed Rulemaking (NPRM), Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees. The NPRM proposes to update and revise the regulations issued under Section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional employees. Proposed revisions include increasing the standard salary level and the highly compensated employee total annual compensation threshold, as well as providing an automatic updating mechanism that would allow for the timely and efficient updating of all the thresholds to reflect current earnings data. Upon publication in the Federal Register, the NPRM will be open for public comment for 60 days.
The DOL announcement is available here.
The news release is available here.
Frequently Asked Questions about the NPRM are available here.
The NPRM is temporarily available here.
(Disclaimer: This NPRM has been approved by the Office of Management and Budget’s Office of Information and Regulatory Affairs and has been submitted to the Office of the Federal Register (OFR) for publication. It is currently pending placement on public inspection at the OFR and publication in the Federal Register. This version of the final rule may vary slightly from the published document if minor technical or formatting changes are made during the OFR review process. Only the version published in the Federal Register is the official version, and the public comment period will begin when the NPRM publishes in the Federal Register.)