Are catch-up contributions limited to K plans?

[Jed Macy]

FACTS: ABC, Inc. sponsors only one qualified plan which is a 25% mppp for the benefit of all of its employees.

ISSUE: Does §414(v) allow the mppp to be amended effective 1/1/2002 to accept catch-up contributions from those participants who are 50 or older?

DISCUSSION: §414(v)(6)(A)(i) defines "applicable employer plan" to include all qualified plans including mppp. But the catch-up contribution is described in §414(v)(1) as an "additional elective deferral". I have read many descriptions of this new plan feature that use 401(k) plans as the example but do not state that it is limited to 401(k) plans. I have also read that "any qualified plan can allow catch-up contributions" on this message board without citation.

So which way is it? Can the ABC, INC. MPPP allow catch-up contributions and continue to be a mppp?

[MGB]

The language of the law allows the catch up in any type of plan (including DB). However, Treasury has indicated it will issue guidance that only plans that can have elective deferrals (and 457 plans, which technically are not elective deferrals) will be allowed.