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Forums Human Capital Management Lawson S3 HR/Payroll/Benefits

403b set-up for 15-years of service rule

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dtracey
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8/19/2013 4:36 PM
Has anyone set-up their 403b to accommodate the 15-years of service rule?  We are a hospital and qualify for this additional contribution for our employees who have worked full-time for 15 years.  We're not sure how to set-up this additional limit, since it doesn't apply to all participating employees.
Mary Porter
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8/19/2013 5:21 PM
You just brought back nightmares. I hope that you have someone advising you properly on how to determine
eligiblity since it's not just 15 years it also involves salary. We had someone improperly advising payroll on this
a few years ago and had to do a lot of correcting because based on salary over the 15 years they weren't actually
eligible. It was a mess to clean up.
 
I would think if you were going to set it up it would be a BSI Code similar to how the over 50 rule is set up.
Karen Ploof
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8/19/2013 10:54 PM
We created a BSI code similar to over 50 but with a very high limit. As Mary says, there is a complex calculation to determine how much each employee can contribute. We required the employee consult with our 3rd party consultant and we only allowed the additional withholding on instructions from the vendor.
dtracey
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8/20/2013 3:52 PM
Thanks for your help, it pointed us in the right direction.