Solution Properties
Solution ID:
230605145903323
Last Modified Date:
Wed Nov 05 21:51:36 UTC 2025
Taxonomy Path:
Category//Payroll and HR//Benefits
Author:
[email protected]
How to set up a retirement benefit to include a catch-up limit
Description
Cause
Resolution

Starting with release 2026.0, Sage 50 supports the Super-Catchup requirement contribution as defined by the SECURE 2.0 Act. There’s now a third option in the Catch Up dropdown field in Employee Maintenance for Yes - Super.

  1. Click Maintain, Employees/Sales Reps.
  2. Select the Employee ID.
  3. Click the Withholding Info tab.
  4. Locate the retirement benefit in the Payroll Field Names and go over to the Catch Up column.
    • For a catch-up contribution, select Yes
    • For the Super-Catchup contribution, select Yes - Super
  5. Click Save.

NOTE:

Existing companies that were converted from a prior version won't have the proper formulas for Super Catchup. To create the formulas in an existing company, you'll need to create the 401k settings in a brand-new company and copy over the formulas. Any new companies you create will have the updated formulas.

The instructions below are for 401(k), but they also apply to any other retirement benefits with a Super Catchup: 403(b), 457(b), Roth, SIMPLE, etc. Just select the appropriate retirement plan formula.

1. Create formulas in a new company

  1. Create a new company. It doesn't need to be named anything in particular. It will just be a dummy company used to create the updated 401k formulas.
  2. Go to Maintain, Payroll, and Payroll Setup Wizard.
  3. Go through the Payroll Setup Wizard and set up a new 401k plan. Use the same settings as your existing 401k plan.

2. Copy the employee 401k formula from the new company to the existing company

  1. Once you have the 401k set up, go to File, Payroll Formulas, and User-Maintained.
  2. Find the 401K EE 26 formula and select it. (This assumes that you're working in the year 2026.)
  3. Click in the Formula field, select the entire formula, and press Ctrl+C to copy it. (You can paste it into Notepad if you like.) 
  4. In Sage 50, go to File and Open Company, and open the original company.
  5. Go to File, Payroll Formulas, and User-Maintained.
  6. Find the 401K EE 26 formula and select it.
  7. Paste the new formula into the Formula field and replace the existing formula. Click Save.

3. Copy the company contribution 401k formula from the new company to the existing company

  1. Go to File, Open Company, and open the new company.
  2. Go to File, Payroll Formulas, and User-Maintained.
  3. Find the 401K ER 26 formula and select it.
  4. Click in the Formula field, select the entire formula, and press Ctrl+C to copy it.
  5. Go to File and Open Company, and open the original company.
  6. Go to File, Payroll Formulas, and User-Maintained.
  7. Find the 401K ER 26 formula and select it.
  8. Paste the new formula into the Formula field and replace the existing formula. Click Save.
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