Understanding the Section 603 - 401K to Roth Report

You can use the Section 603 - 401K to Roth report to move employees enrolled in a pre-tax 401K Catch Up to a post tax Roth Catch up contribution. The Section 603 - 401K to Roth report automates the process of determining and moving employees based on the following criteria:

• Employees enrolled in a pre-tax 401K Catch Up plan aged 50 or older (anytime in the calendar year based on their birth date).
• Employees who have earned more than $145,000 in social security wages in the prior year.
• Employees who must be moved to a post tax 401K Catch Up plan.

This move does not apply if the employee wages for the previous year are unavailable.

This report can be run in both proof mode and final mode. Based on the processing option values, this report displays the eligible employees who satisfy the following criteria.

• Age exceeds the specified limit.
• Catch Up DBA exceeds the Social Security Wages limit.

The Catch Up DBA and Roth DBA (if available) of the employee are ended based on the effective date mentioned in the processing options. A new Roth DBA, if not already available is created with the rate of the previously closed 401K Catch Up. If a Roth DBA is already available for the employee, then both 401K Catch Up and Roth Catch Up contributions are ended and a new Roth Catch Up is created based on the effective date. The rate for the newly added Roth Catch Up is the sum of the previous 401K Catch Up and Roth Catch Up DBAs.

Note:

• When you run the report selecting only DBAs in the processing option, the system considers all the records in the F06106 table with that DBA irrespective of plan and plan options for processing.
• When you run the report selecting both DBAs and plan details in the processing option, the system considers all the records in the F06106 table with that DBA including plan and plan options for processing.