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Understanding the existing set up of 401K elements in US payroll and configuring new setup
We have existing 401K elements (Base, Catchup).
We have set up annual limit of $23000 for base element for employees till age 50.
Whereas for employees above age 50 can make additional contribution of $7500 through Catchup element.
The catchup element is triggered once employee reaches regular contribution of $23000.
As per new requirement, we want to merge both the elements into one i.e., include the logic of catchup element in the regular element.
Additionally, as per new rule from IRS, effective 01st Jan 2025, employees who reach age of 60,61,62, and 63 can make increased contribution of 11,250$.
Has anyone tried to achieve similar requirement? If yes, can you let us know the solution which you have designed.
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