Catch-up contributions

[k man]

If an employee does not hit a plan limit or the applicable 402(g) limit for deferrals are previous contributions that had been designated as catch up contributions then reclassified as ordinary deferrals up to the applicable limits?

[MGB]

There is no such thing as "previously designated catch up contributions." All deferrals are regular deferrals until they exceed some limit no matter what the plan sponsor/participant calls them as they are made to the plan. It isn't until then that the excess becomes a true catch up contribution. If a plan sponsor is having the employees designate them as catch up contribuitons ahead of time (actually, my employer is doing this, too), that is only for their own internal naming of it; it has nothing to do with the law and whether or not it will actually become a catch up contribution.

So the answer is yes, they are reclasified as a regular deferral. However, technically, they were never classified as a catch up contribution to begin with and were always regular deferrals.

[k man]

How are matching contributions treated? The guidance suggests that it is up to the employer