Catch Up Contributions

[Guest jalbee]

Is it necessary to have participants make positive elections as to whether they will make catch up contributions and to specify the dollar amount?

[MGB]

No.

Technically, those over 50 just have higher limits than those under 50. They do not actually have a separate contribution called a catch-up.

However, if a plan has its own limit (e.g., 10%), and that plan wants to offer catch-ups, they must somehow operationally allow the person to elect to make a larger deferral than those under 50. In this case, there may need to be a separate election.