Catch-Up Contributions

Duration: 60 Min.

In 2001, the Congress passed EGTRRA, the Economic Growth and Tax Relief and Reconciliation Act. EGTRRA allowed plan participants who are over age 50 to contribute additional amounts each year. Originally it was $5000, but it's gone up over the years to $5500 since 2009 and rising to $6000 for 2015. This is over and above the section 402(g) and section 415 limits. It was thought that these older participants—who were coming close to retirement—needed to be able to contribute more—to “catch up” with the needs of retirement.
Catch-ups are allowed in several types of plans. All look at age, but some of them have special rules. Relius Administration will process all of these.  Relius will look at a participant’s age, the plan’s provisions, the appropriate limits and other factors to determine whether a participant is eligible to receive these allocations, along with performing the appropriate compliance testing.  Relius will handle all of the ones that might occur.
    In this session, we will:
    • set up the plan to allow Catch Up Contributions
    • code participants in Census for Catch Up Contributions
    • process Catch Up Contribution Transactions
    • perform ADP / ACP Testing
    • process any needed re-characterization of contributions
    • examine special catch-up rules for different plan types

  • Event Details