no, I think this was planned years ago and is finally taking effect next year
Read herein, per those gubbmint revenuers…
Summary
IR-2023-155, Aug. 25, 2023
WASHINGTON — Today, the Internal Revenue Service announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher‑income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions.
At the same time, the IRS also clarified that plan participants who are age 50 and over can continue to make catch‑up contributions after 2023, regardless of income.
Today’s announcements were included in Notice 2023-62 PDF, now posted on IRS.gov. This notice provides initial guidance for section 603 of the SECURE 2.0 Act, enacted in December 2022. Under that provision, starting in 2024, the new Roth catch-up contribution rule applies to an employee who participates in a 401(k), 403(b) or governmental 457(b) plan and whose prior-year Social Security wages exceeded $145,000.
The administrative transition period will help taxpayers transition smoothly to the new Roth catch-up requirement and is designed to facilitate an orderly transition for compliance with that requirement. The notice also clarifies that the SECURE 2.0 Act does not prohibit plans from permitting catch-up contributions, so plan participants who are age 50 and over can still make catch-up contributions after 2023.
The Treasury Department and the IRS plan to issue future guidance to help taxpayers, and the notice describes several positions that are expected to be included. In addition, the notice invites public comment on the matters discussed in the notice and suggestions for the future. The notice provides details on how to submit comments.
I just had a vision of petitioning the tax office: “your attempt to collect taxes from me is inappropriate due to my chronic, disabling health condition – I am deathly allergic to taxes”.
Jesus, the penalties for not paying on time were far more than the paltry interest. $80 in interest paid, $374 in penalty. Think it’s all settled. Presumably next year I won’t be owing nearly $10k tax. It sucked that it happened in the same timeframe as other large purchases but all worked out.
I probably should, since my income changed again this year. I did some quick math before and figured I should be close on my old income but haven’t checked closely this year.
I try to keep mine at +/- 1k, which requires an annual calibration as my bonus money will push my marginal taxable income into the 32%+ brackets and a much lower rate is withheld.
Got multiple notifications that the $500 tax refund for 2024 filers was due out this month. Reading them is like reading about a Nigerian Prince. Not sure what language these press releases were written in, but it wasn’t English by a long shot.
I made an estimated tax payment this weekend. I didn’t strictly have to, but I’ve made a Roth conversion and realized some capital gains and I don’t want a big balance due.
Hi. I filed my Federal Income Tax filing about March 1. I am due for a sizable refund. The IRS website says the IRS has some questions about my return and they will mail me a letter within three weeks. I never received their letter, or a refund. There is an 800 number, which is hard to get a real person, but eventually the person who answered has no further information and said to wait for the letter. I don’t know if they mailed such a letter that I never received, or if they never mailed it. I assume many income tax workers have been laid off and they are short-staffed, but that doesn’t help me.
Any ideas?
At worst, can I claim this refund as prepaid taxes next year?
We have had open tax returns for years. The IRS is non responsive. I get notices that we owe thousands, followed by notices that we are owed thousands. It is indeed virtually impossible to get answers from a human.
I haven’t had a SS card since I lost my wallet as a teenager. I applied for a replacement in November. My application was accepted and I was told I would get it in 5-10 business days.
Never got it, now the response is basically lol you can’t get that anymore.