Starting in 2024, catch-up contributions will be allowed on a Roth (after tax) basis for those earning more than $145,000/yr in the preceding year.
Part of the Secure 2.0 Act allows catch-up contributions for all participants; however, it has been interpreted to require all wage earners to make them post-tax eliminating the right for average wage earners to make the catch-up contributions pre-tax. Recently members of Congress wrote an open letter to the Secretary of the Treasury stating that Congress did not intend to eliminate the pre-tax option for other than high-wage earners and that Congress will act to correct the misunderstanding. Unfortunately, the letter essentially confirms that the unintended mistake was made and that a correction will be necessary to restore the pre-tax benefit. As a result, until Congress actually passes the correction, it is unclear whether any catch-up contributions made by other than high-wage earners will be allowed to be pre-tax.