A catch-up contribution is a salary-deferred contribution made by a participant age 50 or older that exceeds the annual limit or the actual deferral percentage (ADP) test for highly compensated employees. Catch-up contributions may be made to a 401(k) plan. According to the Internal Revenue Service (IRS), a participant is catch-up eligible concerning a plan year if the participant turns age 50 by the end of the calendar year in which the plan year ends, and the participant is eligible to make elective deferrals under the plan.
A participant is deemed to be age 50 at any time during the calendar year in which he turns 50. The catch-up contribution for 2022 is an extra $6,500 per year, bringing the total 401(k) contributions to $27,000.