You should contact your plan administrator to find out whether your plan allows catch-up contributions and how the catch-up rules apply to you. The rules relating to catch-up contributions are complex and your limits may differ according to provisions in your specific plan. Of course, Joe couldn’t defer more than $19,500 under either plan and he would be responsible for monitoring his own contributions. However, if Joe participates in two 401(k) plans, each maintained by an unrelated employer, he can defer a total of $26,000 even if neither plan has catch-up provisions. If the plan didn’t permit catch-up contributions, the most Joe could defer would be $19,500. In this case, it is up to you to monitor your deferrals to make sure that they do not exceed the applicable limits.Įxample: If Joe Saver, who’s over 50, has only one employer in 2020 and participates in that employer’s 401(k) plan, the plan would have to permit catch-up contributions before he could defer the maximum of $26,0 (the $19,500 regular limit for 2020 plus the $6,500 catch-up limit for 2020). If you participate in plans of different employers, you can treat amounts as catch-up contributions regardless of whether the individual plans permit those contributions. Catch-ups for participants in plans of unrelated employers You don’t need to be “behind” in your plan contributions in order to be eligible to make these additional elective deferrals. These amounts are subject to cost-of-living PDF adjustments.You may contribute additional elective salary deferrals of: If permitted by the 401(k) plan, participants age 50 or over at the end of the calendar year can also make catch-up contributions. If you are a manager, owner, or highly compensated employee, your plan might need to limit your deferrals to pass nondiscrimination testsĬatch-up contributions for those age 50 and over.Your plan's terms may impose a lower limit on elective deferrals. Plan-based restrictions on elective deferrals
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