Contribution Limits - 15 Year Catch-Up And Age 50+ Catch-Up

For employees who may be eligible for the 15-year catch-up, are we obligated to determine if they’re eligible for that before they utilize the age 50+ catch-up?

You don’t have to permit employees to take advantage of the 15-year catch-up. However, If you want to allow the 15-year catch-up, employees have to take advantage of the 15-year catch-up before they use the 50+ catch-up. There is a $15,000 lifetime maximum for the 15-year catch-up . If an individual is contributing less than the allowable maximum, taking into account both the 15-year catch-up as well as the age 50+ catch-up, the 15-year catch-up must be reduced first.

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