Eligibility for Pretax Catch-Up Contributions for deferred compensation plans

Oracle Cloud Payroll uses Eligible for Pretax Age Catch-Up Contributions on the employee Reporting Information card to determine whether it processes a person's pretax age-based catch-up contributions.

This eligibility value on the card applies to these plan types.

• 401 (k)

• 403 (b)

• 457 (b)

Oracle Cloud Payroll doesn't create, change, or switch employee plan participation elections.

Manage employee pretax catch-up eligibility

To manage employee eligibility:

• Manually set the eligibility.

  • For individual employees, set Eligible for Pretax Age Catch-Up Contributions on the employee's Reporting Information card.

  • For multiple employees, use the HCM Data Loader (HDL).

• Use the SECURE 603 Catch-Up Eligibility Update data type in the Start-of-Year Process flow to automate annual eligibility updates.

  Use this option only when your organization's employer identification numbers (EINs) can be represented by one of the supported evaluation levels.

  • Payroll statutory unit (PSU)

  • Tax reporting unit (TRU)

  • Tax group

Note:

You're responsible for confirming plan design, Roth catch-up availability, participant eligibility, employee elections, and legal compliance requirements with your plan administrator or legal advisor.