3761 / What are the rules for catch-up contributions to employer sponsored retirement plans?
Catch-up contributions are defined as additional elective deferrals by an eligible participant in an applicable employer plan, as defined in IRC Section 414(v) and regulations thereunder. Elective deferral for this purpose refers to the amounts described in IRC Section 402(g)(3) ( Q 3760), but also includes amounts deferred to eligible Section 457 governmental plans.1 The provisions allowing catch-up contributions are among the retirement amendments of EGTRRA 2001 that became permanent under the Pension Protection Act of 2006 (“PPA 2006”).2For purposes of IRC Section 414(v), an applicable employer plan means:
(1) employer plans qualified under IRC Section 401(a) ( Q 3838);
(2) Section 403(b) tax sheltered annuities ( Q 4047);
(3) eligible Section 457 governmental plans (457(b) plans);