Definitions for "Catch-up Provision"
A provision found in some 401k plans that allows an eligible employee who are at least age 50 to make higher annual contributions in the years prior to retirement.
A provision found in both 403(b) and 457 plans that allows an eligible employee to make higher annual contributions in the years prior to retirement.
A provision for 457 participants nearing retirement to defer additional amounts of their current salary as a "catch-up" for contributions not deferred in previous years ("unused deferrals"). In addition, 401, 457 and IRA participants age 50 or older may make additional catch-up contributions that are not related to unused deferrals.