Configure Payroll for SECURE 2.0 Act

The SECURE 2.0 Act of 2022 includes several retirement plan provisions that affect payroll processing for deferred compensation plans.

Use this topic to configure Oracle Cloud Payroll for supported SECURE 2.0 provisions, including catch-up contribution limits, qualified student loan payment employer-match contributions, and pretax catch-up eligibility.

Note:

Oracle Cloud Payroll supports the payroll-processing aspects of these provisions. You're responsible for confirming plan design, participant eligibility, employee elections, and legal compliance requirements with your plan administrator or legal advisor.

Title and section	Description	Notes
Title I - Section 109	As of January 1, 2025, age-based catch-up limits are increased for individuals aged 60 to 63 to the greater of: $10,000, indexed 150% of the standard age-50 catch-up amount	For deferred compensation elements you created before the 24D enhancement: Run the Feature Upgrade flow. Select Upgrade elements for age-based catch-up deferrals and limit enhancement. Elements created after the enhancement already include the updated template behavior. If your plan doesn't support the increased catch-up limits, override the predefined amounts using the Calculation Value Definitions task. For further info, see Override Deferred Compensation Catch-Up Limits for ages 60 through 63.
Title I – Section 110	As of January 1, 2024, qualified student loan payments can be treated as elective deferrals for the purposes of (employer) matching contributions.	This provision is optional and depends on your plan design. For further info, see Configure Employer-Match Contributions for Qualified Student Loan Payments.
Title VI -– Section 603	As of January 1, 2026, employees must make age-based catch-up contributions as designated Roth contributions when: Their prior-year Social Security taxable wages exceed the applicable indexed threshold. Their Roth catch-up is available under the plan. Employees at or below the threshold can continue to make age-based pretax catch-up contributions, subject to plan rules and elections.	This provision is required for payroll processing. You can maintain pretax catch-up eligibility: Manually on the employee Reporting Information card Automatically using the SECURE 603 Catch-Up Eligibility Update data type in the Start-of-Year Process flow See Eligibility for Pretax Catch-Up Contributions for deferred compensation plans.

Title and section

Description

Notes

Title I - Section 109

As of January 1, 2025, age-based catch-up limits are increased for individuals aged 60 to 63 to the greater of:

$10,000, indexed
150% of the standard age-50 catch-up amount

For deferred compensation elements you created before the 24D enhancement:

Run the Feature Upgrade flow.
Select Upgrade elements for age-based catch-up deferrals and limit enhancement.

Elements created after the enhancement already include the updated template behavior.

If your plan doesn't support the increased catch-up limits, override the predefined amounts using the Calculation Value Definitions task.

For further info, see Override Deferred Compensation Catch-Up Limits for ages 60 through 63.

Title I – Section 110

As of January 1, 2024, qualified student loan payments can be treated as elective deferrals for the purposes of (employer) matching contributions.

This provision is optional and depends on your plan design.

For further info, see Configure Employer-Match Contributions for Qualified Student Loan Payments.

Title VI -– Section 603

As of January 1, 2026, employees must make age-based catch-up contributions as designated Roth contributions when:

Their prior-year Social Security taxable wages exceed the applicable indexed threshold.
Their Roth catch-up is available under the plan.

Employees at or below the threshold can continue to make age-based pretax catch-up contributions, subject to plan rules and elections.

This provision is required for payroll processing. You can maintain pretax catch-up eligibility:

Manually on the employee Reporting Information card
Automatically using the SECURE 603 Catch-Up Eligibility Update data type in the Start-of-Year Process flow

See Eligibility for Pretax Catch-Up Contributions for deferred compensation plans.

For further information, see the following:

Secure 2.0 Section by Section Summary on the senate.gov website
H.R.2954 - Securing a Strong Retirement Act of 2021 on the congress.gov website
Notice 2024-2 – Miscellaneous Changes Under the SECURE 2.0 Act of 2002 on IRS.gov website
Final regulations for catch-up contributions on the federalregister.gov website