401k Over Annual Deduction Limit Because Of Balance Adjustments
(Doc ID 1602856.1)
Last updated on OCTOBER 05, 2020
Applies to:Oracle HRMS (US) - Version 12.1 HRMS RUP11 and later
Information in this document applies to any platform.
On : 12.1 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 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)
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