MIP Ideas Portal

Ability to apply a single deduction limit to multiple codes

When an entity offers more than one 401(k) type (such as a traditional and a roth), they need to setup separate deduction codes (one is pre-tax, one is post tax, they must be separate). However, the annual deduction limit ($19,500 in 2020) applies to BOTH codes. If the limit is set up on the individual code, an employee could over-deduct unless the entity manually tracks it. In our case, we have 4 payroll deduction codes that fall under the $19,500 limit.

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  • Jan 29 2020
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