Final Catch-Up Contribution Rules Exempt Union Plans

The IRS has issued final regulations permitting employees over age 50 to make additional "catch-up" contributions to 401(k) and other elective deferral retirement plans. The catch-up contribution rules, which also apply to IRAs, tax deferred annuity (403(b)) plans of tax-exempt employers, and 457 plans of governmental employers, were enacted by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and took effect in 2002. The final IRS regulations are effective beginning in 2004.