In observance of the Independence Day federal holiday, the New York Stock Exchange and Capital Group’s U.S. offices will close early on Wednesday, July 3 and will be closed on Thursday, July 4. On July 3, the New York Stock Exchange (NYSE) will close at 1 p.m. (ET) and our service centers will close at 2 p.m. (ET)
The SECURE 2.0 Act of 2022, passed by Congress in December, included a provision that allows plan sponsors to give employees the option to take employer contributions on a Roth after-tax basis. As a leading provider of 401(k) plans, Capital Group is committed to offering Roth employer contributions in our PlanPremier® and RecordkeeperDirect® solutions.
However, clarification from the IRS is needed on several aspects of the provision, including how to report employee taxes on Roth employer contributions. As a result, the timing of this feature remains unknown as we and other recordkeepers continue to await IRS guidance. We’ll communicate updates as they’re available.
For more information on Roth employer contributions and other SECURE 2.0 Act provisions, review this summary guide.