SuitePeople U.S. Payroll: 457(b) Catch-Up Contributions for Employees Aged 60 – 63

This notice is intended for customers who are using SuitePeople U.S. Payroll. In line with Secure Act. 2.0 provisions, SuitePeople U.S. Payroll will now support 457(b) higher catch-up contributions of employees between the ages of 60 and 63.

What is Changing?

Starting May 23, 2025, NetSuite will support additional higher catch-up and special 457(b) catch-up contributions for employees aged 60 – 63 with the following new payroll items:

Payroll Item	Annual Limit (2025)
457(b) Catch-Up
Govt. EE 457(b)-Catch-Up-60-63	$11,250
Govt. EE 457(b) Roth-Catch up 60-63	$11,250
Special 457(b) Catch-Up
Govt. EE 457(b) - Catch-up, Additional - 3 Years to Retirement-ROTH	$23,500

Important:

• As per IRS guidelines, an employee can only have one type of 457(b) catch-up contribution assigned. For compliance, ensure that an employee is assigned either the special 457(b) catch-up or any of the additional catch-up contribution payroll items.