US Benefits: 401K EE contribution
I have a requirement that even though emp reaches yearly compensation limit of 245000, EE contribution should continue and ER Contribution should stop for 401K savings plan. Can i configure the same in system? in my system both are stopped once emp reach compensation limit.
S Karthik replied
By maintaining the constant Value in T511K, this can be controlled
HCEER = 1
By maintaining T511P-HCSLM is not equal to 1 & if HCE Limit is reached, this will
1) Continue 401K EE pre-tax contributions
2) Continue Catch-up contributions
3) Stop ER catch-up Contribution
There is lot of notes available explaining how system will behave my maintaining the values in constant
HCSLM, HCEER and HCSLC.