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E1: 07: In Pre-Payroll R07200 401K and 401K ROTH Deductions that Cross Annual Limit into Catch Up Must Limit Percent (Doc ID 2959291.1)

Last updated on JULY 05, 2023

Applies to:

JD Edwards EnterpriseOne US Payroll - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

An employee has, for example, elected 401k/401k CU (catch-up) at 15% contribution and 401K Roth/401k Roth CU at 10% contribution, with a Group Limit Maximum Percent of 25%.

If the limit is met in a payroll, the 401K is calculated at the full 15% amount and the 401K Roth is calculated at 7%. The 401k catch-up is calculated at 3%. There is no 401K Roth catch-up amount.
This is incorrect as the 401k / 401K catch-up pair should be limited to 15%. In this scenario, the 401k / 401K catch-up pair contribution is 18%.

Steps:
1. In P059116, set up an accrual to capture 100% of earnings up to the annual compensation limit with the Basis of Calculation set up for pay types 1-999.
2. Next, in P059116, set up 4 deductions for 401k and 401K Roth, with a catch-up deduction for each. All deductions belong to the same group with a group limit. The Basis of Calculation for each deduction is the accrual.
3. In P050181, add the accrual and the 4 deductions to an employee. Set 401k/401k catch up at 15% contribution and 401K Roth/401k Roth catch up at 10% contribution. With a Group Limit Maximum Percent of 25%.
4. Run employee through Payroll, R07200 through Final Update, R07250. When the limit is met in a payroll, the 401K is calculated at the full 15% amount, the 401K Roth is calculated at 7% (for example) and the 401k catch-up is calculated at 3%. There is no 401K Roth catch-up amount. This is incorrect as the 401k / 401K catch-up pair should be limited to 15%.
In this scenario, the 401k / 401K catch-up pair contribution is 18%. The 401K Roth catch-up should have calculated 3% to meet the group limit maximum 25 percent.

Cause

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In this Document
Symptoms
Cause
Solution
References


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