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There's a different way of setting up 401(k) Catch-up, craibuc.
The default limit for 401(k) is $19, 500. For employees over 50 years, we can set up 401(k) Catch-up for the additional $6, 500 for a total of $26, 000, which is the limit for the year 2020.
401(k) and 401(k) Catch-up are two different payroll items. The screenshot you've provided is only for 401(k). You can follow these steps to add 401(k) Catch-up:
You can also read this guide about payroll: Payroll 101.
Comment again if you have other concerns. I'll be here!
Thanks for reaching out, @craibuc.
There are two limits for each retirement plan. One limit is for employees under 50 and the other is for employees 50 years of age and over. You can defer compensation limits that are a voluntary contribution to a savings plan designed for retirement income.
For further information please check out these articles:
Benefit Plan Contribution Limits for 2020
Retirement Plan Deductions/Contributions
If you need anything, I’m just a post away. I hope you have a great evening.
There's a different way of setting up 401(k) Catch-up, craibuc.
The default limit for 401(k) is $19, 500. For employees over 50 years, we can set up 401(k) Catch-up for the additional $6, 500 for a total of $26, 000, which is the limit for the year 2020.
401(k) and 401(k) Catch-up are two different payroll items. The screenshot you've provided is only for 401(k). You can follow these steps to add 401(k) Catch-up:
You can also read this guide about payroll: Payroll 101.
Comment again if you have other concerns. I'll be here!
That worked. Thank you.
Hi,
Can you tell me why the 401k correctly deducts from gross. pay and the 401k catch up deducts from net pay? Because of this, the 401k catch up does not show on W2.
Thank you for posting, @rcpcnh.
I can see that you’ve posted this question a couple of times and my colleague already added an answer. If you haven’t notified with the response, check this link.
Let us know if there’s anything that you need. The Community is always here to assist. Have a wonderful day!
Are the instructions the same for a 403B plan?
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