401K Limit for different Ages (Urgent)

[former_member219162]

Hi,

We have a following requirement.

For employees with AGE >=50 , the 401K Employee Pre Tax limit should be $20,500 and For employees with AGE < 50 , the 401K Employee Pre Tax limit should be $15,500.

Note : We do not need any CATCHUP limit to be configured in our system. From 2008, the employees won't have Catch Up contribution.

I see, that in T511P ( Molga = 10 , KONST = 401KL ,Begda = 01/01/2008) , the amount defined is $15,500, which has been declared by the SAP. We need this amount for employees below age 50. But for employees with AGE >=50 we need to put the 401K Amount to $20,500.

Please let me know, how can we achieve this functionality.

Points will be awarded for relevant suggestion too.

Regards,

Anirban

[Former Member · Accepted solution]

Hi Roy,

Create 2 different Age group for 401k contribution plan.

1. 18 ++

2. 50++

As per your req. for 18 ++ define total max. as $15,500 and for 50++ define total max. as $20,500.

Test it and see how it works.

Hope this helps you.

Regards,

Mamatha

[Former Member]

Hi Roy,

Its a EASY PROCESS.

Create a New wagetype for EE catch up contribution.

Under US payroll benfit integration you will find set up catch up contributions section, here you need to assign the Catch up wage type for the existing 401k plan and put the AGE LIMIT FOR ELIGIBILITY AS 50. Thats all you need to do.

system automatically increases catch up contributions if the the employee age is 50+ this will be driven by his DOB.

Once his 401k regular contribution 15,500 is finished and he is 50+ remaining 5000 will be deducted with your new catchup wagetype

Thanks,

Venu

[Former Member]

Create two selection criteria for 401k, let us say in Age Groups and do the respective configuration. While configuring the 401k EE contribution u can maintain the both selection criteria with different Tax Limit.