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Reporting of Catch-Up Contributions
Part IV. Items of General Interest
PURPOSE
This is to advise employers how to report elective deferral catch-up contributions beginning after December 31, 2001.
STATUTORY CHANGE
The Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16) added section 414(v) to the Internal Revenue Code of 1986. For 2002, section 414(v) enables applicable employer plans to allow eligible participants who are age 50 or over to make additional elective deferrals, i.e., "catch-up" contributions.
REPORTING ON FORM W-2
For 2002, employers are required to report participants' elective pension deferrals on Form W-2 in box 12 using Codes D through H and S. For employees' qualified catch-up contributions after 2001, employers must report the elective deferral catch-up contributions in the totals reported for Codes D through H and S.
REPORTING ON FORM 5498
The reporting of catch-up contributions will be addressed in the 2002 Instructions for Forms 1099-R and 5498. No major changes are anticipated.