Hello Everyone,
We are encountering some issues with our 401K / Roth configuration. Our plan details are as follows:
- Employee contributions are optional and they can contribute 0 - 75% per pay period (to Roth and / or 401K)
- Employee can contribute to both Roth & 401K
- Employer matches 100% of employee contributions up to 6% per pay period
Current status
- The annual limits work for employee contributions only (single plans and when set up for both plans)
Our issues are as follows:
- We are not able to restrict the employer contribution to both plans. It matches up to 6% for both 401K & ROTH. It should be a combined match of 6%.
- The employer portion is exceeding the annual maximum contributions
For example:
- 45 Year Old Employee contributes 6% to 401K and 10% to ROTH
- Employer portion is 12 % (6% 401K and 6% for Roth contribuutions) but should only be 6%
- Employee contributions max out at $17,500
- Employer contributions are not included in this max out but stop after employee maxes out (based on employee contributions)
I have tried setting up limits on deductions but I am not able to get it to work. Should I be investigating PBEN0014 or PBEn0028?
We are just starting in US Benefits as we are primarily a Canadian company so any assistance is greatly appreciated.
Regards,
Lisa