401k / Roth Limit on EE Contribution

[Katt]

We are currently in the process of setting up a 401k Roth plan. We already have a pre-tax 401k option in place. Instead of creating a new plan, we are using our 401k plan and entering the ROTH percentage in the post tax box of IT0169. Our setup is good with the exception of our plan's limit on the EE contribution percentage per pay period.

Is there a way to limit the EE contribution percentage between the 401k plan and the Roth plan to a max of 50% per pay period?

Thanks in advance,

Katherine

[ted_dinh · Accepted solution]

Not sure if this can be done through SAP standard configuration. You may have to create custom payroll function to check that the sum of pre and post not exceeding the 50%.

However, if you use 401K plan with post-tax contribution as ROTH, wouldn't it really still just be 401K plan as ROTH contribution would also be contributed to the current $18,000.00 401K limit per year?

[Katt · Accepted solution]

Thanks Ted. I believe we have found that we can accomplish this by user exits.

Katherine

[Former Member · Accepted solution]

Hello Everyone,

We are going to have the ROTH 401(k) contribution and so we need to set up a new benefit plan code called "ROTH". Today we have an existing plan type called "QUAL" which is set up with our traditional plan.

Our question is, can we set up the new plan code ROTH under the existing plan type QUAL?

Also, the time constraint for infotype 0169 (Savings Plan) is 2 (Record may include gaps, no overlapping). We are not allowed to create another QUAL record at the same time. If we need to create another QUAL record for ROTH while record for our traditional plan exists, can we change the time constraint to 3 (Record may include gaps, can exist more than once)?

Do you see any issues in changing the time constraint?

Thank you!

Rodelyn