What year does an employee become eligible for catch-up deferrals on deferred compensation plans?
Author: Ryan F. Donovan
An employee becomes eligible for catch-up deferrals under the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) the year that the employee will turn 50 years old. This is true even if the employee has a birthday late in the year. However, an employer may or may not offer the option to engage in catch-up deferrals as part of the plan in place, even if employees over the age of 50 are employed with that employer.