The setting that determines whether a plan allows enhanced catch-up contributions is located in Plan Specifications under the Contributions section. Within this area, you will see an option labeled “Allow Participants aged 60–63 to make enhanced catch-up contributions.” If this election is set to Yes, the DC Compliance software will automatically apply the enhanced catch‑up limits for participants who attain ages 60 through 63, effective January 1, 2025. If the election is set to No, the system will instead apply the regular catch‑up limits for all catch-up eligible participants.
The default for this election is Yes. If you also subscribe to our document software, the document provision will map into DC Compliance in the first plan year or when adding a new plan year and pulling the specifications from the plan document.
Note that DC Proposal assumes that this election is Yes and will apply the enhanced catch-up limits for participants who attain ages 60 through 63 for plan years 2025 and beyond.