Supplemental Beneftis Plan configuration

[Former Member]

The Supplemental Benefits Plan for Employees of the Company (SBP) is a non-qualified deferred compensation plan as defined in section 409A of the Internal Revenue Code of 1986, as amended.

The IRS puts restrictions on the amount of total contributions allowed in your 401K account (known as the 415 Limit) and how much eligible compensation may be factored into calculating your contributions (known as the Comp Limit). Total contributions include employee pretax and after-tax contributions and company matching contributions. The 415 Limit for 2011 is $49,000 and the Comp Limit for 2011 is $245,000.

The SBP was created to allow you to continue saving for retirement without regard to these limits. SBP contributions are not made throughout the entire year. They only begin after your contributions in the 401K stop due to either the 415 Limit or the Comp Limit. In other words, the 401K is your Savings Plan for contributions below the 415 Limit or Comp Limit and the SBP is your Savings Plan for contributions above the 415 Limit or Comp Limit.

Can anyone help me how to automate this plan in benefits configuration

[bob_gladd]

Have you come up with a solution? If so would you mind sharing?

I would suggest creating a rule that creates a cummulation wage type for the non-qualified plan. When EE contribs are below 16500 or eligible earnings (/102) below 245k then the non-qualified cummulation WT=0. otherwise it would = /102. This is the simple version. you would have to consider the roll-over pay period where it could be partial qualified and non-qualified earnings in the same period.

This is the approach Iu2019ve used at another client and Iu2019m curious how others are approaching this.

[sarah_debza]

Hello,

If I understood your post you are currently referring to the 'Catch'up' functionality. if this is correct have a look at the note below it explain how to configure such plan

453966 Savings: FAQ - Catch-up contributions

Hope this help

Sarah

[Former Member]

Hi Sarah

This is not related to catch up contribution. SBP is the new plan called supplemental benefit plan. This plan will kick in only if the employee reaches his limits in his normal savings plan.

thanks

Muru