Setting up limits for retirement plans and catch-up provisions

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Important reminder!

Licenses for Payroll CS, Trial Balance CS, and Write-Up CS (but not Engagement CS) permanently expired on March 1, 2017.

For details, see CSA license expiration 2017 – frequently asked questions.

Some processes documented in the Help & How-To Center are no longer applicable, due to the discontinuation of these CSA modules.

Using the following procedure, you can set up retirement plan limits and catch-up limits globally rather than entering this information at the employee level.

  1. Choose Setup > System Configuration > Payroll Tax Information > Federal.
  2. In the Federal Tax Information dialog, click the Retirement Plan Limits button.
  3. Enter the limits applicable to each of the plan and catch-up types.
  4. Click OK to save this information.
  5. Click Done to close the Federal Tax Information dialog.
  6. Choose Setup > System Configuration > Deduction items.
  7. In the Deduction Items dialog, highlight the deduction item you are using for your retirement plan and then click the Edit button.
  8. Click the Calculations tab and choose the appropriate retirement plan type from the Calculation type drop-down list.
  9. Click Enter to save your changes and then click Done to close the Deduction Items dialog.

Notes

  • Catch-up limits apply only to employees who are age 50 or above. To determine an employee's age, the application uses the date entered in the Date of birth field on the Personal/W-2 tab of the Employees dialog. If no date has been entered, the application cannot apply catch-up limits for the employee.
  • You can set up 401(k) deduction limits at the employee level. See the Setting up an employee's 401(k) information procedure.

Related topics

Federal Tax Information > Retirement Plan Limits dialog

Excluding clients and employees from the retirement plan Catch-up provision

Setting up an employee's 401(k) information

Company match employee setup example

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