How Is The 401K Match Calculated When The 401a and 402g Limits Are Met?
(Doc ID 1482040.1)
Last updated on OCTOBER 27, 2020
Applies to:PeopleSoft Enterprise HCM Human Resources - Version 9.1 and later
Information in this document applies to any platform.
How is the employer match calculated for when the 401a and 402g Savings Plan Limits are met where the employee deduction is not limited to the 401a limit and the employer match is not limited to the 402g limit?
Service Step table:
Up to 3% of employee earnings: 100% match.
Up to 5% of employee earnings: 50% match.
- 402g limit includes employee deductions, Before Tax, but not employer match deductions
- 401a Limit includes employer match deductions, NonTaxable Btax Benefits, but not employee deductions
- 401 special accumulator for the paycheck = 47,500
- Earnings left before hitting 401a Limit = $40,045.46
- Employee deduction 8% before tax = 1,312.57, 2487.43 = 402g limit not taken
- Employer match NonTaxable Btax Benefits = 1256.96
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