403b deferrals stopping at annual comp limit & 457b incl in 401a17

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Geri
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Posts: 6
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    403(b) deferrals are being stopped once someone meets the annual compensation limit ($260k in 2014) BEFORE someone meets the 402(g) limit. Our company has opened a ticket to Lawson but I'm wondering if this is something we can override or fix in the setup so we don't have to wait for our ticket to receive a response.

    On a related note, employees with 457 are having that shut off once their combined 403(b), 401(a) & 457(b) contributions reach 401(a)(17) ($52k in 2014). 457(b) should not be included in this limit but we don't know how to fix that. Again, waiting on Lawson.

    I am not a Lawson guru but am trying to become one. Thanks in advance for any ideas and help!

    Margie Gyurisin
    Veteran Member
    Posts: 538
    Veteran Member
      Try looking at the apply maximum limit flag on your plan (BN15 Vesting comp tab). Ours are set at N so it doesn't stop employees at the compensation limit.

      I am not a guru but I did stay at a Holiday Inn last night
      Geri
      Basic Member
      Posts: 6
      Basic Member
        Thank you! I checked that. We have a benefit plan that is set up as "403b with match". We do want the annual comp limit to apply to the employer contributions, but since the employee and employer contributions are essentially combined in this one plan it doesn't seem like we can distinguish where to apply the limit and where not to. :(
        Margie Gyurisin
        Veteran Member
        Posts: 538
        Veteran Member
          We, too, want our employer contributions limited by that amount. Ours are set up with match limit schedules and we limt the match to 3% on the annual comp limit or 7800.00 for example.
          Geri
          Basic Member
          Posts: 6
          Basic Member
            Thanks! So I looked at that, and your idea makes total sense. I think what now complicates it is that our 457 plan is part of the 403 pay class, so we will still have the problem of the 457 amounts being combined with the 403 and 401 and cutting employees off at the $52000 limit (we do not want 457 to be included in the 457 limit).

            Have you or anyone else ever opened a ticket with BSI? It seems to be taking an awfully long time to get resolution from them.
            Geri
            Basic Member
            Posts: 6
            Basic Member
              Thanks! So I looked at that, and your idea makes total sense. We still have the problem of the 457 amounts (457 is not set up as a benefit plan, it's a deduction in PR14 only) somehow combined with the 403 and 401 and cutting employees off at the $52000 limit (we do not want 457 to be included in the 457 limit).



              Have you or anyone else ever opened a ticket with BSI? It seems to be taking an awfully long time to get resolution from them.
              Margie Gyurisin
              Veteran Member
              Posts: 538
              Veteran Member
                Do all the deduction codes have the same tax statue on them? We have 04 on our 457s.

                I generally work these cases with Lawson since a lot depends on how items are set up in Lawson and passed over to BSI via Lawson code. When I have opened a case with BSI, I generally heard from them within 24 hours.
                Geri
                Basic Member
                Posts: 6
                Basic Member
                  We do have 04 set up on the 457s. Today I was advised that the way the 457 codes were initially set up years ago "communicate" with BSI and that it's BSI causing the problem. Furthermore I'm told that nobody at our company has access to change this so we have to wait for someone to get access. Very strange.

                  Margie, thank you so much for all your responses, it's been very helpful!
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