Considerations When Setting Up 403 (b) and 457 (b) Deferred Compensation Plans

Setting up 403 (b) and 457 (b) deferred compensation deductions is significantly different than setting up any other deduction type.

In addition to defining the Pretax Deductions and Voluntary Deductions elements, it involves capturing additional deduction info on the person's Benefits and Pensions calculation card.

How You Define the Base Contributions

To define the base contribution, use the Elements task and select the one of the following Pretax Deductions secondary classification.

• Deferred Compensation 403b

• Deferred Compensation 457

For further info, see the following in the Help Center.

• Set Up 403 (b) and Roth 403 (b) Deferred Compensation Plans

• Set Up 457 (b) and Roth 457 (b) Deferred Compensation Plans

How You Configure Catch-Up and Employer-Match Deductions

Do not use the Elements task to define catch-up or employer-match deduction elements for your employees. The element template creates these elements for you. It does this based on the selections you make when you configure the person's Benefits and Pensions calculation card.

To view or manage the Benefit and Pensions card, use the Calculation Cards task. Select the plan you want to configure, and add the settings in Enterable Calculation Values on Calculation Cards.

You can create a Benefit and Pensions card for each employee as needed, do a mass data upload through the HCM Data Loader, or load pension data from another application to create the cards.

For further info, see the following in the Help Center.

• Benefits and Pensions Card for the US

• Special 457 (b) Catch-Up Contributions

How You Can Adjust the Contribution Limits

You can set overrides on plan contribution limits using the person's Benefit and Pensions card.

Use the Override IRS Limit calculation value to overrides the statutory employee base contribution limit as enforced by the IRS. This assists in preventing overpayment into contributions. Use this value to set a new limit.

Here are some reasons you may choose to adjust contribution limits.

• If an employee is contributing to multiple types of plans, such as 401 (k) and 403 (b), the limits apply to both plans and you need to account for that in each plan.

• When the employee has a 403 (b) plan and more than 15 years-of-service. Use the enterprise hire date to calculate the years of service. You can also override the setting to check for 15 years-of-service.

  For further info, see 403 (b) Plan 15 Years-of-Service Rule on the Help Center.

• When an employee is eligible for the special catch-up limit for 457 (b) deferred compensation plans.

  For further info, see Special 457 (b) Catch-Up Contributions on the Help Center.