The most immediate operational problem is for 401(k), 403(b) and other DC plans that allow catch-up contributions. Effective January 1, 2026, all catch-up contributions made by employees who had FICA wages in 2025 of greater than $145,000 from an employer for which they currently work, must make any catch-up contributions to that employer’s plan in the form of a Roth contribution.

Also, by December 31, 2025, sponsors of non-governmental 457(b) plans must amend their plans for the SECURE Acts and other recent laws.

Sponsors of other types of plans have amendment deadlines in future years. (See our January 12, 2024 insight on extended amendment dates.) However, even if they are not required to amend their plans now, they may need to make operational changes to comply with the new rules, so that future amendments are made in manner that is consistent with plan operations.

As always, amendments for discretionary changes made during a plan year must be formally adopted by the last day of the plan year in which they are effective for all plan types.

Non-governmental (tax-exempt) 457(b) plans

Section 457(b) plans may be sponsored by governments or by tax-exempt (non-governmental) organizations. Different rules apply for the two types of section 457(b) plans, including the date by which they must be amended for recent laws such as the SECURE Act and the SECURE 2.0 Act. Governmental plans are generally provided with extra time to amend tied to legislative sessions. Thus, governmental 457(b) plans do not have to be amended until December 31, 2029.

However, neither Treasury nor legislation provided further delays for tax-exempt 457(b) plans — not even to the December 31, 2026 date that applies to most single-employer, non-bargained plans. Consequently, the amendment date for tax-exempt 457(b) plans is December 31, 2025. Amendments should be retroactive to the effective date of each provision, and the plan had to have been operated since the effective date in accordance with the eventual amendment. The main change involves updates to the required beginning date under Section 401(a)(9) of the Internal Revenue Code (IRC).

Discretionary amendments

The delayed dates for amendments related to new laws and regulations, which are generally December 31, 2026 for non-collectively bargained, single-employer plans and December 31, 2028 (or, if later, expiration of collective bargaining contracts) for single-employer and multiemployer collectively bargained plans, do not apply to discretionary amendments.

Discretionary amendments must still be formally adopted by the last day of the plan year in which they are effective, retroactive to their effective date. The relevant date is the last day of the plan year; not December 31, 2025 unless the plan is a calendar-year plan.

Operational issues

Roth catch-up contributions

For 2025, SECURE 2.0 allowed plans to permit participants ages 60, 61, 62 or 63 to make “super catch-up contributions” equal to 150 percent of the age 50 catch-up contribution limit. For 2026 and later years, SECURE 2.0 requires plans, other than multiemployer plans, to require all catch-up contributions (age 50 or the super contributions) to be made as a Roth contribution, if a participant’s FICA wages exceeded $145,000. FICA wages are tested with a one-year look back and only consider wages from the same employer in the look-back year and the current year. See our September 22, 2025 insight on the final catch‑up contribution rule.

This new rule requires coordination among payroll providers, recordkeepers and in-house financial and HR staff. Given the January 1, 2026 effective date (for all but multiemployer plans), plan administrator decisions about how to address the catch-up Roth requirement, including ensuring the administrative structure is in place, as well as participant mailings and elections, will be needed to be made by December 2025.

The Treasury final regulations apply the Roth rules to super catch-up contributions for multiemployer plans starting in 2028 because of the unique characteristics of multiemployer plans.

Long-term, part-time employees

Starting in 2026, the requirement that 401(k) and 403(b) plans allow part-time employees to make elective contributions will apply to employees for the two preceding years rather than three preceding years. See our December 20, 2023 insight on requirements for long-term, part-time employees.

Annual cost-of-living increases

Each year, the Treasury publishes the increases in various limits tied to the cost-of-living increase. To be sure to receive our insight on these increases so you can make the necessary changes in communications and operations, join our email list.

Generally, a plan amendment is not needed for these changes because plans typically reference the IRC section, not the specific number.

Action items to consider

Sponsors of tax-exempt governmental plans must make their changes by December 31, 2025, regardless of plan year.

The Roth catch-up rule applies on a calendar-year basis, regardless of your plan year. Consequently, operational changes are needed by January 1, 2026 for all affected plans.

Plans, as always, need to be reviewed for operational violations. If there are any, the plan may be able to self-correct. Determine whether you need to self-correct or, if necessary, apply to IRS for correction relief. Segal compliance staff can help you work through the various requirements and help you decide what to do.

Most plans do not need to be amended this year. However, in light of the need to operate in accordance with the changes and the need to eventually amend plans, plan administrators may wish to consider restating the plan to incorporate earlier adopted amendments (or at least preparing a working draft) so pre-amendment administration will be easier, as will making amendments for the new requirements.