Is Roth Plan Set Up ANY Easier??

It depends on how complicated your plan design will be and if your plan currently provides for any after-tax deductions. We have no customizations for our Roth. There are some gotchas if you have percent contributions and the employee splits their contributions between traditional and Roth and you are matching both.

We have just set up a Roth plan with after tax deductions. I have tested the percent contributions with employee splits between traditional and Roth. Where is the gotcha? In the match? The deductions are correct and the limits are working.

Thanks, Margie - although we don't allow after tax contributions on our DC plans - but we do have percent and flat dollar contributions, and will be matching both. Sigh - if there's an exception, we'll be able to find it here. I appreciate the info!

I hope the traditional pretax and roth are in the same plan if the max percent is a percent of pay. The gotcha is if you have someone contributing to both the trad and roth as percent and the employee receives a bonus or high pay that causes them to hit the 16,500 limit, for example, the system will max out the first deduction and may not get the full expected company match for the year. But, that depends on your plan - we match 50% of first 6% of pay with a limit of 3% of annual limits amount or 7350 for this year.

Stephanie,

You are welcome. In your case, you should do it all in one plan. You will have to do some special tricks to get the tax status on the deduction codes but I believe that is in the KB article.

Thanks, Margie. I will watch out for this as our plan is similar to yours.

Stephanie and Margie, I learn a great deal from both of you veterans. Keep the posts coming.

Thanks!

Margie - if we can report as our administrator requires (federal DC plans are slightly different than traditional plans - 7701(j) instead of 401(k) or 403(b), etc) we'll definitely go with one plan - thanks for all of the useful info!!

Hi, we have employees who are particiapting in Traditional 401k and Roth 401k plans . Our company has annual limit of $2000 and we don't know how to make Lawson look at both plans combinedly and stop their employer match deduction at $2000. We had cases where employee got full $2000 match under both plan codes which is incorrect. Any advise or workaround is appreciated.

Thanks!

They have to be in the same BN15 plan. Lawson has a document on support that sould help you. I think it is KB 559431

KB 559431

Hi - I tried to find that article re: ROTH plan setup on the support site and have be unsuccessful. Does anyone have a copy they can email me or a link that actually has the document. Any help is greatly appreciated. I have to set up a Business Spec for this by Friday..

Thanks,

Mark

You should be able to find it on the lawson support site by searching for article 559431. You have to put 559431 in the search box and then select Record ID in the drop down box to the right of the search text. If you can't find it, I can send it to you - let me know your em address.

Hi Margie, 

We set up our Roth and Regular 401k plan on the same BN15 record. However when we run a manual check to test them, Lawson only calculates the ER match on the regular 401k deduction. We want instead to calculate the ER match on both deductions. Are we missing a configuration option? 

Our company matches 50% of EE contributions up to 6%. Both the Roth and Regular 401k contributions are eligible for the match. 

Thank you!

Peter

Company aftertax deduction code needs to be on the plan and linked as well as PT deductions. Plan needs at least 4 deductions codes in total.

The new Lawson KB article 1188052 is missing the company aftertax deduction in that article.

We currently have separate 401k and Roth 401k plans. I am exploring how to combine both roth and 401k into one plan. I have KB 1188052 and have an additional question. BN15 has deductions for 401k and Roth including company match for both on the Deduction Percent tab.

I must have missed the obvious but when enrolling an employee on BN31.2, how do we choose the pre-tax or after-tax deduction?

There is a Pre/Aft field on the enrollment screens. You can enter one of these A, P or B. depending on your setup.

And if they have both then your PT amount and AT amount get added together and put in the Sal, Annual field.

We have had Roth and Standard 401(k) in one plan for some time including catchup and it works well.   The setup was quite involved...    In fact, I was just looking at my go-live documentation and there were fields where we needed to set values the wrong way and then come back to the screens to change them because of "edits" that we got during setup.   (I remember working with a Lawson Benefits Systems Product Manager because of the "edits" they had programed into the forms.)   I would hope that they have since changed those.  The Plan also worked in ESS which was nice. 

We have the same set up and I cannot get past the enrollment screens to do some testing...I get the following error...

After-tax contrib exceeds maximum limit by... (the AT amount)  Where did I go wrong??

What do you have your Match Limits set to on Bn19.3?

Were you able to set this up successfully? I'm trying to add a Roth plan to our existing 403b plan and running into difficulty.

Thanks!