Secure 2.0 ACT 2025 in Fusion HCM || Super Catch-up Contributions

Age Catch-Up Deferrals and Limit Enhancements

As of January 1, 2025, the age catch-up deferrals allowed for employees who are of age 60 through 63 is increased to a higher limit.

These limits are delivered through these value definitions.

Deferred Compensation 401k Special Age Catch-Up Annual Limit

Deferred Compensation 403b Special Age Catch-Up Annual Limit

Deferred Compensation 457 Special Age Catch-Up Annual Limit

To check if this limit has been updated in the system navigate to "Value Calculation Definition" and search for "Deferred Compensation 401k Special Age Catch-Up Annual Limit" it will show you "11250" value and same you can search for "Deferred Compensation 403b Special Age Catch-Up Annual Limit" and "Deferred Compensation 457 Special Age Catch-Up Annual Limit".

Steps to create object group(Will be used in a process to upgrade element)

1. Navigate to Object Group click on + icon to create.

2. Enter Details according to below ss

3. Click on Next and click on create + icon under Element Classification.

4. Next scroll down and click on create + icon under Element to add element name.

Steps to Upgrade the element

1. Go to "Submit a Flow" task and select "US Legislative Data Group" and search for "Run Feature Upgrade" next click on it.

2. Next enter below details

     Payroll Flow  - Give any custom name. 

     Feature           - "Upgrade elements for age-based catch-up deferrals and limit enhancement"

     Additional Information - "Upgrade401k" The object group created in above step.

3. Submit the task and wait for completion. Now run the payroll and it will start deducting the catchup contribution.

I have upgrade the elements and Successfully setup the configuration. If you need any help on this please join my telegram group Click Here to Join Telegram