Age Catch-Up Deferrals and Limit Enhancements

We have enhanced your deferred compensation plan catch-up limit support to comply with the latest SECURE 2.0 Act changes.  As of January 1, 2025, the age catch-up deferrals allowed for employees who are of age 60 through 63 is increased to a higher limit.

These limits are delivered through these value definitions.

• Deferred Compensation 401k Special Age Catch-Up Annual Limit

• Deferred Compensation 403b Special Age Catch-Up Annual Limit

• Deferred Compensation 457 Special Age Catch-Up Annual Limit

This enhancement ensures compliance with the latest SECURE 2.0 Act updates.

Steps to Enable

You must upgrade your existing elements to use these new limits.

1. Run the Element Upgrade flow.

   1. From My Client Groups, click Payroll.

   2. Select Submit a Flow.

   3. Select your US legislative data group, and search for and select Element Upgrade.

   4. Set these parameters.

   5. Fields and their values for the Element Upgrade flow

      Field label	What you select
      Mode	Final
      Primary Classification	Primary classification of the element you’re upgrading
      Secondary Classification	Secondary classification of the element you’re upgrading
      Element Name	Name of the element you’re upgrading NOTE:  You must run this process for each element.
      Formula Upgrade Option	Do not make changes to the existing formula NOTE:  This causes the flow to skip any formulas the Elements task created when you defined your elements.  This means you won’t lose any configuration you made to those formulas.However, the flow still updates all necessary predefined formulas.

   6. Submit the flow.

2. Compile any new or updated predefined formulas.

1. Review the Element Upgrade Process output report.  It provides the names of any predefined fast formulas the flow updated.

2. From My Client Groups, click show more.

3. Select Fast Formulas under Payroll.

4. Search for each upgraded formula, and click Compile.