Limits and Overrides for 403 (b) and 457 (b) Deferred Compensation Plans
When configuring a deferred compensation plan for an employee, you can enable and configure a wide variety of limits and overrides.
You set these as calculation values on the person's Benefits and Pensions card. They apply to 403 (b), 457 (b), Roth 403 (b), and Roth 457 (b) plans.
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Calculation value |
What it does |
|---|---|
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Adjusted Deferred Compensation Limit |
This is valid for 403 (b) and Roth 403 (b) plans. Applies to employees eligible to the 15 Years-of-Service rule. Set this value to Yes to enforce the Adjusted Deferred Compensation Annual Limit 403b to their 403 (b) base and catch-up contributions. For further info, see 403 (b) Plan 15 Years-of-Service Rule in the Help Center. |
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Catch-Up Processing Rule |
Use this value to define how employee catch-up contributions are deducted.
For further info, see the following in the Help Center.
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Employee Catch-Up Contribution |
Use this value to enable employee catch-up contributions. For further info, see the following in the Help Center.
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Employer Catch-Up Contribution |
Use this value to enable employer-matching catch-up contributions. For further info, see the following in the Help Center.
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Employer Contribution |
Use this value to enable employer-matching contributions. For further info, see the following in the Help Center.
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Employer Contribution Limit Percentage |
This limit is the maximum amount of matching contributions an employer can provide, measured as a percentage of the employee's pay per period. Use this value only when you want to override the predefined value. For further info, see Contribution Limits for Deferred Compensation Plans in the Help Center. |
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Enforce Eligible Compensation Limit |
This enforces the IRS annual compensation limit check for contributions. If you select No, the payroll process continues to perform employee deductions up to the annual deduction limit, even if the annual compensation limit has been reached. For further info, see Contribution Limits for Deferred Compensation Plans in the Help Center. |
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Enforce Employer Catch-Up Compensation Limit |
Use this value when defining employer-matching catch-up contributions.
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Enforce Employer Compensation Limit |
Use this value when defining employer-matching contributions. |
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Enforce the 15 years of service |
This is valid for 403 (b) and Roth 403 (b) plans. Select Yes to apply the 15 Years-of-Service rule to an ineligible person. Note: This value overrides Adjusted Deferred Compensation Limit. If Adjusted
Deferred Compensation Limit is set to No, but this
is Yes, the payroll process applies the 15
Years-of-Service rule to the person.
For further info, see 403 (b) Plan 15 Years-of-Service Rule in the Help Center. |
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Flat Amount for Employee Catch-Up Contribution |
Use this value when defining employee catch-up contributions. For further info, see the following in the Help Center.
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Flat Amount for Employee Contribution |
Use this value when defining employee base contributions. For further info, see the following in the Help Center.
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Flat Amount for Employer Catch-Up Contribution |
Use this value when defining employer-matching catch-up contributions. For further info, see the following in the Help Center.
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Flat Amount for Employer Contribution |
Use this value when defining employer-matching contributions. For further info, see the following in the Help Center.
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Override Adjusted Deferred Compensation Limit |
Overrides the Adjusted Deferred Compensation Limit. |
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Override IRS Annual Compensation Limit |
Overrides the Eligible Compensation Annual Limit 403b limit for employee contributions. |
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Override IRS Employer Annual Compensation Limit |
Overrides the eligible compensation annual limit for 403 (b) and Roth 403 (b) employer-matching contributions. |
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Override IRS Employer Catch-Up Annual Compensation Limit |
Overrides the eligible compensation annual limit for 403 (b) and Roth 403 (b) employer-matching catch-up contributions. |
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Override IRS Limit |
Overrides the statutory annual employee base and Roth 403 (b) and 457 (b) contribution limit as enforced by the IRS. This assists in preventing overpayment into contributions. For example, if an employee is contributing to multiple plans, use this value. It overrides the statutory employee contribution limit to help ensure the maximum isn't exceeded. For further info, see Contribution Limits for Deferred Compensation Plans in the Help Portal. |
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Partial Deduction Allowed |
Allows partial contributions:
Applies to 403 (b), 403 (b) after-tax, 457 (b), 457 (b) after-tax, Roth 403 (b), and Roth 457 (b) elements. |
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Percentage for Employee Catch-Up Contribution |
Use this value when defining employee catch-up contributions. For further info, see the following in the Help Center.
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Percentage for Employee Contribution |
Use this value when defining employee base contributions. Use this value only when you want to override the predefined value. For further info, see the following in the Help Center.
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Percentage for Employer Catch-Up Contribution |
Use this value only when overriding the default employer-matching catch-up contribution of 50%. For further info, see the following in the Help Center.
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Percentage for Employer Contribution |
Use this value only when overriding the default employer-matching contribution of 50%. For further info, see the following in the Help Center.
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