Employees aged 50 or older can make extra contributions to their 401(k) plan beyond the standard IRS limits. These are called catch-up contributions and are designed to help employees boost retirement savings as they approach retirement. Salaris automatically applies catch-up eligibility based on the employee’s date of birth.
Contribution limits (2025)
Contribution Type | Limit |
Standard annual limit | $23,500 |
Catch-up limit (age 50+) | $7,500 |
Total annual limit (50+) | $31,000 |
How catch-up contributions work
Employees can elect higher contribution percentages starting in January of the year they turn 50.
Salaris tracks both standard and catch-up contributions under one 401(k) benefit code.
The combined contribution appears as a single line item on employee pay statements.
For reporting, the total (including catch-up) is shown in Form W-2 Box 12, Code D.
Example: In 2025, an employee earning $100,000 annually who contributes 30% of pay:
If under 50, contributions are capped at $23,500.
If 50 or older, contributions may reach $31,000.
Need help?
For definitions of the columns in this report, refer to our Payroll Glossary.
If you have questions or need assistance, please contact Salaris Payroll Support. We’re here to help.