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This article applies to:

  • Product: Accounting CS
  • Subject: Payroll checks,Setup

Customize employee retirement catch-up and contributions

Learn how the application handles retirement plan deductions, company matching amounts, and automatic adjustments to annual limits.
The application manages cafeteria plan deductions, retirement plan deductions, and company matching amounts. It automatically adjusts the annual limits for various retirement plans.
When employees reach age 50, they are eligible for increased (catch-up) contributions. If a birth date is entered in the
Birth date
 field on the Personal tab of the Employees screen before payroll checks are processed, the application will automatically increase their annual contribution limit.
You have several options for specifying how these limits are applied for your clients and their employees.

Require birthdate information for employees with retirement plans

To ensure the contribution limit is increased for all eligible employees, you can require a birth date for any employee with a retirement plan deduction.
  1. Select
    Setup
    ,
    Firm Information
    , then
    Firm
    .
  2. In the
    Employee Requirements
     section of the
    Preferences
     tab of the
    Firm
     screen, mark the
    Require Birth date if active retirement plan deduction
     checkbox.

Exclude deduction items or employees from catch-up limit provisions

Some plans don’t offer catch-up limits, and some employees may choose not to take advantage of these limits. The application offers ways to specify that increased catch-up limits should not apply for an employee, regardless of their age.
Client-Level Settings
At the client level, you can specify that the catch-up limit shouldn't be applied to a specific deduction item for any employees. To do this, follow these steps:
  1. Go to
    Setup
    , then select
    Payroll Items
    .
  2. In the
    Limits
     section of the
    Main
     tab, mark the
    Do not apply catch-up limit
     checkbox.
note
This checkbox is available only for deduction items using a Special Type of Retirement/Cafeteria plan with 401(k), Roth 401(k), 403(b), Roth 403(b), 457, or Simple 408(p) selected.
Employee-Level Settings
At the employee level, you can specify that the catch-up limit should not be applied to a deduction item for a single employee. To do this, follow these steps:
  1. Go to
    Setup
     and select
    Employees
    .
  2. In the
    Payroll Items
     tab, find the
    Deductions
     grid.
  3. Select the ellipsis button next to the deduction item.
  4. In the
    Limits
     section of the
    Main
     tab of the
    Employee Payroll Item Settings
     window, mark the
    Do not apply catch-up limit
     checkbox.
note
Marking and clearing the checkbox at the employee level will override the client-level selection for this employee.