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?
If you have questions or need assistance, please contact Salaris Payroll Support. We’re here to help.