401K Catch-up

Do you offer 401K as a benefit?

If so, do you allow your employees over 50 to select one election percent for the 17,500 limit and a different election percent for the 5500 catch-up limit?

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Infor Lawson Human Resources Group - Discussion

Comments

sriman-shivakoti

We manage it all in one DC plan.

mstephens

Margie, would you mind if I contact you privately to discuss how you set this up? We are experiencing issues with catch-up and stoping deductions when the limit has been reached (we have both Roth and 401K) and I would like to see if there is another way we should be handling 401k catch-up.

Thank you,

Allison Gundel

slivak

Would you mind NOT discussing this privately? ;-)

It serves the community much better if everyone can follow issues like these through to their resolution.

Thanks!!

Infor dEPM Data Access and Data Management.mp4

sriman-shivakoti

Allie,

Do you have your Roth and traditional deducitons set up in one plan? That may be the key.

rchudek1

We manage the catch up by the BSI Group Code on the HR11 Tax tab, AGE50CTCHCHUP. This allows anyone who is age 50 and over to automatically contribute over the 17500.00

0911060553270289.pdf

unknown

We do it the same way as Rachel mentioned. Set up a group in BSI and add payment overrides for that group within BSI. There was a document published by lawson 5 years ago about how to set this up in BSI - refer KB 1208910.

unknown

We are adding Roth to our Traditional 401K using the same DC benefit plan and managing the 17,500 limit. We also manage our company match through this same benefit plan. Since our company does not match catch-up, we manage catch-up through a separate deduction code with manual intervention. Our company wants the 50+ employees to be able to manage catch-up separately, so we will be adding another deduction code for Roth catch-up and manually intervening to manage limits.
If anyone out there knows how to use a DC benefit plan for Catch-up (Traditional and Roth) along with a separate DC benefit for Traditional/Roth basic 17500 limits (including a company match), please contact me.
We have tried several set-up options for managing the catch-up thru a DC plan and using BSI for limits, but we haven't been able to get it to work so that we have the outcome we desire.
Thank you,
Maureen Murphy with Cambia Health Solutions

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