New BN Plan - 457B with matching Employer in 401A

Our municipality has a voluntary 457B plan in place. The employer would like to begin a match but does not want to make direct contributions into the 457B as that would limit the employees contribution. (Total contribution cannot exceed IRS limit-ex 20,500) We have set up a 401a plan for just the employers contribution. Trying now to figure out how to do this in Lawson. Does anyone have an employer only contribution set up in V10 for a deferred compensation plan?

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darcey-timek

Heather,

We do have one.

Did you get your plan set up?

Darcey

anthony-mannino

Thanks Darcey. I never saw this one until your reply just now. Heather - the system can totally preserve the 20,500 contribution (or catchup amount) and not be affected by employer contributions. Said differently, they can be setup as a match without affecting the employee contribution (and that's most common actually). To Darcey's point, please advise if you solved already.

andrea-silva

I would be interested in how you set up your 401A and if you did any overrides in BSI (if you use them) to stop it at the annual limit

anthony-mannino

Most common: If you don't have any other 457 plans, you can call the plan in Benefits 401a (and even name the deduction 401a) and just use Tax Status 457 on the tax status tab on the deduction. (The 401a tax status is newer and there have been mixed reviews). Since it's invisible to the employee, it works great doing as described using 457 as the tax status and say 401a everywhere else. Then the plan is setup normally. Use Match Limit Schedule to control the match (which is usually XX% up to Y% -- and you want that limit on the match limit schedule to be a percentage of the maximum comp limit for the year in question. For example, 2% match on $305,000 means the most someone can match is $6,100. BSI doesn't need any special setup to stop them at the annual employee limit, nor the match limit. If someone is doing over 50 catchup, than the Payment Override in BSI allows them to contribute at the higher level (make sure it says Aggregate to Highest Maximum) and no need to list the Employer Match Limit in BSI (being managed in Lawson).

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