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Retirement plan setup

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Eileen G
New Member
Posts: 3
New Member
3/1/2012 5:05 PM
    With the two plans we find that when an Employee is enrolled in both plans (catchup and regular) and he/she makes a mid year change, the limits that are in place do not work.  The max limits start over.  However, we worked on a report to catch these EE's and update their PR14 deduction limit.  We currently have an interface from the vendor to Lawson that creates the new records.

    My question is, do we have to have separate plans for catchup and regular from a Lawson and BSI perspective.  Having one plan will help us in other areas, but we are also hoping it would resolve this issue.  Any thoughts or other experiences that you can share?

    Thank you!

    Tags: Benefit, Retirement
    stephanie
    Veteran Member
    Posts: 330
    Veteran Member
    3/1/2012 5:33 PM
      You don't need separate plans from a Lawson or BSI perspective, nor from an IRS perspective - I have found it's the administrators of the plans that want the separation. If you use only one plan, those contributing to the catchup (who really are just being allowed to contribute a higher amount) just need a BSI code to allow the higher limit. You'll want to watch your match though -
      Tags: Benefit, Retirement
      Libby W
      Basic Member
      Posts: 7
      Basic Member
      3/1/2012 6:09 PM
        @ Stephanie - do you know how to set up the plan so that the match doesn't take on the 50+ catch up, if it is all done with one plan.
        Tags: Benefit, Retirement
        stephanie
        Veteran Member
        Posts: 330
        Veteran Member
        3/1/2012 6:35 PM
          since the dollars aren't coming from 2 plans, you'll need to put a maximum amount for your match on your contribution record (i.e. on the BN19.4 if you have a match percent)
          Tags: Benefit, Retirement
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