401k Over Annual Deduction Limit Because Of Balance Adjustments (Doc ID 1602856.1)

Last updated on OCTOBER 05, 2020

Applies to:

Symptoms

On : 12.1 version, US Payroll - General

ACTUAL BEHAVIOR
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After doing a balance adjustment to a 401k deduction, the system then took another 401k pretax deduction allowing the balance to go over the 17500.00 legislative limit

EXPECTED BEHAVIOR
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The system to recognize all the 401k deductions and balance adjustments to keep all deductions within the legislative limits

STEPS
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The issue can be reproduced at will with the following steps:
a) 401k element entry value for Eligible Comp Option = No Eligible Comp Limit
  Towards Owed = Yes

b) 401k Catch-up Catch Type = General Catch-Up(Age>50)
  Take overlimit Catchup= Never
  Catchup processing = Concurrent

c) 401k Roth Eligible Comp Option = Stop EE Contr. & ER Match
  Roth Catchup=Yes
  Roth processing order=Concurrent
  effective start date =22-JUL-2013
  effective end date =04-AUG-2013.

401k = 17500 (YTD)
401k Catchup=2000 (YTD)
401k Roth =1030.00 (YTD)

Performed a balance adjustment to move the 1,030 amount from Roth element to Catchup element.

Processed a Payroll
401k = 18530 (YTD)
401k Catchup=4060 (YTD)

Changes

Cause

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