401k Over Annual Deduction Limit Because Of Balance Adjustments

(Doc ID 1602856.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle HRMS (US) - Version 12.0.6 and later
Information in this document applies to any platform.
***Checked for relevance on 15-JUN-2015***


On : 12.0.6 version, US Payroll - General

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

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

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)

The issue has the following business impact:
Due to this issue, users are seeing the 401k value is over the annual deduction limit.


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