Catchup
returns
the 414(v)(2)(B)(i) Catch-up Contribution amount for a given year.
A catch-up contribution is an elective deferral made by a participant age 50 or
older that exceeds the otherwise limited amount.
Catchup for year 𝑥 is based on the
following formula:
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Where 𝐶𝑃𝐼𝑦𝑒𝑎𝑟
is the “3rd quarter CPI” (sum of
the CPI-U for the months of July, August, and September) in the given year.
(September CPI is usual published around October 13.) If the amount so determined is not a multiple of $500,
it is rounded to the nearest multiple of $500. Not less than the amount for
the prior year. The SECURE 2.0 Act of 2022 (“SECURE 2.0”) that was signed into law on
December 29, 2022 as part of the 2023 Consolidated Appropriations Act amended
Code Section 414(v). |
Syntax
Catchup (DeterminationYear, [LawYear],
[Inflation], [Age])
|
Description |
|
|
DeterminationYear |
A
4 digit number, or an optional text value as shown in the table below. If the
DeterminationYear is after the LawYear, this is a projected
calculation based on the Inflation assumption. Click to view various options for the DeterminationYear parameter. |
|
LawYear |
A
4 digit number. |
|
Inflation |
The
assumed rate of inflation: the IRS
Cost-of-Living Adjustment for future years, as measured by the
year-over-year increase in CPI-U. This
is used only for a projected calculation. Optional:
default = 0% |
|
Age |
Effective
for 2025 the SECURE 2.0 Act of 2022 added a new provision raising the
catch-up contribution limit for age 60 through 63 (age at end of year). Optional:
default = 50 |