What Changed with Secure Act 2.0

Starting January 1, 2025, employees aged 60–63 can contribute up to $11,250 in catch-up contributions to their retirement plans.

Previously in Vista, this meant extra work for payroll teams:

• Creating additional deduction codes for the new 60–63 age group.
• Adding those codes to each eligible employee’s PR Employee Dedns/Liabs form.

This process was tedious, time-consuming, and left room for error.

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Vista’s Update: Payroll Pre-Tax Deduction Groups

With the release of Vista 2025.6, Trimble simplified this process by updating the Payroll Pre-Tax Deduction Groups form. A new section was added to account for the Secure Act 2.0 catch-up contribution limits.

Below is an updated form screenshot with the changes.

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How to Configure the New Fields

1. Catch-up Contribution Limit #2
   • Enter the IRS-defined annual limit for Secure Act 2.0 contributions.
   • For 2025, this amount is $11,250.
   • Vista applies this limit across multiple catch-up deductions (e.g., if an employee contributes to both a traditional 401(k) and a Roth 401(k), the system will track the combined total).
2. Minimum Age
   • Enter the IRS-defined minimum age for eligibility.
   • For 2025, the minimum age is 60.
3. Maximum Age
   • Enter the IRS-defined maximum age for eligibility.
   • For 2025, the maximum age is 63.

Important Eligibility Notes

• Vista determines eligibility based on an employee’s age as of December 31 of the tax year.
• If an employee turns 60 by December 31, they’re eligible for the Secure Act 2.0 limit beginning January 1 of that year.
• If an employee turns 64 by December 31, the system applies the standard catch-up limit instead.

Why This Matters

• Accuracy: Eliminates manual deduction code setups.
• Efficiency: Saves payroll teams hours of administrative work.
• Compliance: Ensures contributions stay aligned with IRS limits.

Next Steps

• Review your Payroll Pre-Tax Deduction Groups form before January 1st of each new year.
• Enter the updated Secure Act 2.0 limits for the 60–63 age group.
• Confirm that your employees’ deduction setups are aligned with the new rules.

Need help? Contact one of our payroll consultants by visiting ConstrucTech's website and clicking on "Book A Call" to schedule a meeting.