Catch-up Tv Amp; More

[Carri Seargent]

CatchUp TV & More is a video addon for the Kodi media center (former XBMC). This plugin brings together all the videos of the various services and channels of catch-up TV. Furthermore, this addon allows you to quickly access the videos and content offered by certain websites.

The SECURE 2.0 Act of 2022 (SECURE 2.0) contains several provisions that allow the federal government to have its cake (more tax dollars) and eat it too (more retirement savings, easing Social Security challenges). With SECURE 2.0, we find more Roth, more catch-up, and catch-up as Roth.

Named after the late Delaware Senator William Roth, Roth IRA first became a savings opportunity in 1998. Starting January 1, 2006, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) added this design feature to 401(k) plans. Although, for the most part, Roth deferrals are treated like pre-tax elective deferrals for plan purposes, they differ in two material respects:

Roth elective deferral opportunities and in-plan Roth conversion and rollover opportunities have become relatively common plan features. They have the potential to create powerful savings tools, especially for those in lower income tax brackets.

Roth treatment historically has been limited to elective deferrals. That changed with SECURE 2.0. Effective now (i.e., the date of enactment of SECURE 2.0), Section 402A of the tax code permits 401(k), 403(b), and governmental 457(b) plans to permit employees to elect to have employer matching or nonelective contributions treated as designated Roth contributions.

This avoids the need for participants to jump through the hoops of electing an in-plan Roth conversion with respect to these employer accounts, if permitted by the plan, to achieve this result. This also has the potential to produce marginal tax savings on the accumulated earnings if Roth treatment is elected at the time of contribution (rather than conversion).

Likewise, 457(b) plans can allow special catch-up contributions during the 3 years immediately preceding normal retirement age. This allows eligible participants to double their deferral limit or contribute the annual limit plus the amount they did not contribute during prior years, whichever is less.

So, what is the catch? Section 603 of SECURE 2.0 amends the catch-up contribution rules to require certain highly paid workers to contribute all of their catch-up contributions as Roth contributions starting in 2024. In many instances, this means the government will receive greater tax revenues on the same dollar because those who are actively working customarily are in a higher income tax bracket than they will be when drawing upon retirement savings. So, taxation is the cost of stockpiling retirement savings for these participants.

Who is highly paid for this purpose? We do not use the standard highly compensated employee definition for this purpose, which is $150,000 for 2023. Instead, we need to keep track of another dollar limit. This special rule applies to anyone earning more than $145,000 in FICA wages in the preceding year, which is subject to indexing in $5,000 increments. Highly paid participants who do not receive FICA wages (e.g., partners) are not currently captured by this rule, but this may be an oversight that is subject to change.

There are many questions about this change, and implementing guidance is needed. For example, are new hires or employees acquired in connection with a business transaction subject to this requirement in their first year of employment? What does the administrator do if the highly paid participant makes a pre-tax deferral election? For example, many plans process single deferral elections. Once the regular deferral bucket fills, the deferrals are recharacterized as catch-up contributions. This administrative process will need to be revised, given this change in the law.

Note that offering only pre-tax catch-up contributions is not an option to avoid this complexity. SECURE 2.0 specifies that if any participant would be subject to this Roth catch-up rule, the plan must offer a Roth catch-up contribution option in order for any participant (even those earning $145,000 or less) to make catch-up contributions to the plan. Congress designed this provision to ensure plans offer this Roth catch-up option.

Participants also will have important financial and distribution planning questions to resolve. For example, if these catch-up contributions are the first Roth deferrals the individual makes, distribution planning will be needed to avoid taxation on the earnings that accumulate. Distributions from Roth accounts are not treated as qualified distributions if amounts are distributed within a 5-year period of when the first Roth contribution was made to the plan (or another plan in the case of a rollover).

An excellent resource for learning more about catch-up growth is the book The 90% Reading Goal by Fielding, Kerr, and Rosier (1998). This book explains how a low-income school district improved the reading scores of all students over many years.

For a student to make above-average gains, both scientifically-based core instruction and additional intervention are usually needed. As I mentioned earlier, core instruction refers to the teaching materials and practices used to teach all students each day. For students who start out behind, providing additional instruction, also known as intervention, is needed.

For students who need to achieve catch-up growth, educators must first anticipate these needs. There will always be students who fall into this group, and instruction must be designed in a way that will allow these students to find success.

To provide additional instruction time to help students catch up, each school team needs to review its daily schedule and include a time block when all students can participate in intervention lessons. Importantly, daily intervention time blocks can be used to support all students by, for example, providing both remedial and extension lessons. Students who are behind use this time to catch up, while those who are already at grade level can use the time to accelerate their learning.

There is an extensive body of research on the importance of goal setting and how goal setting should be approached and implemented to be successful. Renaissance has used this research to create tools in FastBridge and Star Assessments to help educators calculate ambitious yet realistic goals for students who need to achieve catch-up growth.

Students who start a school year behind their classmates need to learn new skills faster than others in order to catch up to grade-level expectations. It is possible for students to achieve such catch-up growth, but only if schools:

When schools use models such as an MTSS and RTI, both general education/core instruction and supplemental intervention are provided. The combination of effective Tier 1 core instruction with Tier 2 and/or Tier 3 intervention creates a pathway for students who start out behind to catch up to peers.

Creating tiered supports requires an ongoing and coordinated effort by all teachers that affirms that, with the right resources and supports, students who start out behind can indeed reach grade-level expectations.

Another concern involved upcoming changes to rules governing catch-up contributions for 401(k) plans. These changes, which initially weren't going to be effective until 2024, will require catch-up contributions for higher-income earners to be made on a Roth basis.

Making catch-up contributions on an after-tax Roth basis means paying taxes on your retirement savings during the years when you usually earn more. On the other hand, traditional 401(k) accounts allow you to defer taxes until retirement, which can be advantageous if you anticipate being in a lower tax bracket by then.

Congress is aware of this and other drafting errors in SECURE 2.0, and lawmakers will likely make technical corrections. However, the mistake complicated challenges with implementing the catch-up contribution change that, until recently, was supposed to be effective next year.

Numerous employers plan providers, and organizations requested more time to modify systems to allow catch-up 401(k) contributions to be made on an after-tax basis. Over 200 entities made up of Fortune 500 companies, firms, and public employers, including the American Retirement Association, Chipotle Mexican Grill, Fidelity Investments, Charles Schwab, Microsoft Corporation, and Delta Airlines, asked for a two-year delay to the Roth catch-up rule to 2026.

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist. "}), " -0-10/js/authorBio.js"); } else console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); Kelley R. TaylorSocial Links NavigationSenior Tax Editor, Kiplinger.comAs the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.

To assist with mandatory Roth catch-up implementation, the IRS signaled its intent to issue future guidance on issues that have been raised by practitioners. Here are several outstanding items that require further guidance.

The information provided is not directed at any investor or category of investors and is provided solely as general information about Lord Abbett's products and services and to otherwise provide general investment education. None of the information provided should be regarded as a suggestion to engage in or refrain from any investment related course of action as neither Lord Abbett nor its affiliates are undertaking to provide impartial investment advice, act as an impartial adviser, or give advice in a fiduciary capacity. If you are an individual retirement investor, contact your financial advisor or other fiduciary about whether any given investment idea, strategy, product, or service may be appropriate for your circumstances.

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