We are implementing a Roth option for our 401k. The Roth will be available for our 401k and our Catch up plan. We currently have two separate benefit plans set up on BN15 – one for 401k and one for Catch-up. Since we have two separate plans, we were told that BSI cannot enforce the $18000 limit for 401k and the $6000 limit for Catch up. It only cares that the employee is allowed to contribute a total of $24000. Since BSI cannot track the individual limits for each plan, we have to manually add the limits to the PR14 records that get created when an employee enrolls in 401k and Catch up. Now that we have both pre-tax and after-tax deduction codes for each plan, the limits will not work because it looks at the individual deduction record and not the combined deduction codes for the plan. Is there a way to bypass the BSI tax tables for any employee who enrolls in both 401k and Catch up? Or is there a way to set up the benefit plan to enforce the individual IRS limits? If we did nothing, it would be a very manual process to check the deduction each week to make sure no one goes over the limits. We are open to customizing but not sure where I should start. Any help or direction would be greatly appreciated.
Example:
Employee enrolls in the 401k benefit plan – 6% pre-tax and 5% after-tax (Roth) – for a total of 11%.
Employee enrolls in the Catch up benefit plan – 2% pre-tax and 2% after-tax (Roth) for a total of 4%
There are now 4 PR14 records for the employee.
401pretax, 401aftertax, CUpretax and CUaftertax. Adding the limits on each record only enforces it for individual PR14 records. It will not combine the 401pretax and the 401aftertax deduction to ensure the sum of those two do not go over $18000