Can an Employer Match Catch-Up Contributions?

Q: Can catch-up contributions be matched if our plan has matching contributions?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: As with many plan-provision questions, the answer depends on what your plan document says!

Matching catch-up contributions is not required, so there should be a section of your plan document or adoption agreement that specifically addresses whether or not catch-up contributions are matched under the plan.

Note that, depending on your plan design, whether or not you match catch-up contributions may be a moot point, as employees in many plans are able to max out their matching contributions without making catch-up contributions to the plan. For example, if I make $100,000; my plan matches 100% of the first 5% of employee elective deferrals; and I defer the full 2025 402(g) limit of $23,500 to my plan account, I will have deferred far more than the 5% of pay necessary to already receive the maximum matching contribution.

In this scenario, I would have already maxed out my employer match, and so it would be irrelevant whether the plan provided a match for my catch-up contributions.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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