Universal availability for age 50 catch-up contribution. (Matthews 401(k)).(Brief Article)

EGTRRA's catch-up contribution for 401(k) participants who are aged 50 or older ($1,000 for 2002) is conditioned on this provision being included in all salary deferral plans of the employer. That is, all participants in any 401(k) plan of the employer must be provided with the opportunity to make the same dollar amount of catch-up contributions. This is the so-called "universal availability" rule. This rule is applied on a controlled group basis applying the requirements of IRC [section]414(b),(c),(m) and (o).It is also an all-or-nothing threshold, and you cannot use the minimum coverage threshold under IRC [section]410(b) to satisfy the requirement.

The IRS has …