Match on Catch-Up Contributions

[Guest Factor]

I have a situation where a Plan allows catch-up contributions, has a match, and does not have language that addresses whether the catch-up is matched or not. It is my assumption that absent language that specifies that the catch-up is NOT matched, it would need to be matched. Is this accurate?

[QDROphile]

The IRS presumption is otherwise. To the IRS, the catch up is merely elective deferrals in excess of certain limits. You don't have catch up contributions except to the extent the deferrals exceed a limit, no matter what you call them. The preamble to the original regulations even suggests that you can't exclude catch up from the match, but the regulations did not follow through. The IRS tried to explain its position by saying that a plan should not define a match by what is not matched. So if the plan says to match elective deferrals and does not state some sort of limit on what elective deferrals are matched, the plan may well provide for matching catch up amounts.