403(b) deduction randomly stopping

The 403(B) deduction has randomly stopped on several employees. Their 403(b) benefit does not have a stop date and the deduction code does not have an end date. No one made any changes to their deduction amount. Some are over age 50 and others are under 50. All deductions stopped on the same pay period except one which stopped on the previous pay period. The only common denominated I have found is that they are all physicians. This happened in July and we are just now discovering the problem. Does anyone have any ideas on where to look for the cause of this problem .

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Comments

unknown

Are you using BSI Group on PR13.1 to indicate who is over 50 and eligible for the higher deferral? You may want to check the limits set up in BSI.

unknown

Check the maximum wages allowed. I had that problem with physicians in the past. There are maximums on earnings as well as deductions and those earnings for physicians can stop the deduction. You might need to work around that.

patrycja-szymanska

The limits in BSI can be on either the employee or employer.

linda-telles

We encountered that problem as well and it has to do with the Maximum Compensation on BN56.1 if they make more than that amount the deductions for the DC plan stop.

Unfortuately, we were not able to find a solution to this issue so we key in a PR39 one time deduction every pay period until the end of the year to force the deduction out.

sriman-shivakoti

I would recommend you look at the apply maximum limit flag on your plan (bn15) and change the setting. We have ours set to "N".

If that is not the culprit, check the employees' HR11, Plan test tab, aply maximum limit.

One of those could be your solution.

mp33580

Also check to see if they are also enrolled in a 457B and both plans are in the same deduction class - you have it set up to look at both when applying limits which would cause you problems too.

unknown

403b-457 annual limit is 17,500if you are 50 or over there is a optional catch up (additional 5,500) making the limit 23,000. Is the YTD deduction for those employees who stopped - $17,500)? Use a BSI group to indicate that staff are 50 or over (PR13 -BSI Group Code). In BSI, make sure the custom calc is set up for the 50+ group and that dates are input for the current year! For higher paid employees (providers) the annual compensation limit $260,000 may be effective for employer contributions (BN56).

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