Roth Catch-Up Contributions (Secure 2.0)

Client Available Resources:

• Year-End Guide (Secure 2.0) - includes information about Secure 2.0 and the Roth Catch-Up Contribution requirements along with a request form if a client needs the deduction setup.

• Catch-Up as a Roth Form request - Part of the Year-End Guide
• Client Guide: Managing Roth Catch-Up Contributions.  Guide includes:
  • How it works description
  • Secure 2.0 – Roth Catch-Up Eligibility report
  • How to add Roth Catch-Up deductions to employees 

How it works:

When the employee reaches their annual contribution limit based on IRS Rules for their regular retirement plan contribution, the system will automatically stop contribution under that deduction code and switch over to the Roth Catch-Up Contribution code.

This works if the following are true:

• The employee meets the eligibility criteria
• Has been assigned the Roth Catch-Up Contribution deduction
• Is included in the retirement plan profile.

Setup Summary:

• Client notifies us Roth Catch-up deduction code is needed and completes request form.

• Deduction code is added and assigned within the applicable retirement plan profile(s)
• Client adds the deduction code to applicable employees.
• System eligibility rules and IRS limits govern the automatic use of the code.

Creating the Deduction Code

1) Add the deduction code under the roll-up type Roth Catch-Up Contribution

2) Setup the EMPLOYEE Default Amount to be "Retirement Plan Roth Catch Up Deduction"

3) Set Frequency to "Every Pay"



4) Add it to any applicable deduction list(s).  Typically, will follow other Roth contribution deductions.

5) Assign the code to the applicable Retirement Plan Profile(s)



Let the client know the deduction is setup and include the guide for using the deduction code so they what they need to do next.

Sample Client Communication:

Hello [Client Name],

The Roth Catch-Up Contribution code has been added to your company and associated retirement plan(s).

Next steps

All details and step-by-step instructions are included in the attached guide:
Managing Roth Catch-Up Contributions

To begin using this deduction:

• Add the Roth catch-up contribution code to any qualified employees in addition to the employee’s standard retirement plan contribution code

• The system will automatically begin calculating catch-up contributions once an employee reaches the annual IRS limit for the year

There is also a shared report available (See the guide: Managing Roth Catch-Up Contributions) to help you identify employees who may be eligible for catch-up contributions.

Please reach out if you have any questions.