Configure Elements for Qualified Student Loan Payments

When configuring matching contributions for qualified student loan payments, use the Elements task to define separate employer-match elements for each eligible plan you offer.

• 401 (k)

• 403 (b)

• 457 (b)

When defining the elements, use the Pretax Deductions primary classification and the Deferred Compensation 401k secondary classification.

Note:

In this case, you use the Deferred Compensation 401k secondary classification even for 403 (b) and 457 (b) plans.

If you're processing the student loan payments outside Oracle Cloud HCM, create an information element to track those amounts in payroll.

Define the employer-match elements

To define the employer-match elements for each of your eligible plans:

1. Start the Elements task.

2. Select Pretax Deductions as the primary classification and Deferred Compensation 401k as the secondary classification.

3. Configure your element by answering all necessary template questions per your business requirements.

   Select No for these questions.

   • Should the element have an associated catch-up element?

   • Should the element have an associated Roth element?

   • Should the element have an associated after-tax element?

4. Select that this element has an associated employer-match element with employee contributions.

5. Select Submit.

6. Configure element eligibility links for the Employer Match and Employer Match Results indirect elements.

   Create links for these employer-match indirect elements only. Don't create them for the other indirect elements.

7. Repeat these steps to create separate employer match elements for each of your eligible plans.

   You'll use the same Deferred Compensation 401k secondary classification to configure your employer match element for student loan payment matching in your eligible 401k, 403b and 457 plans.

Define information elements for qualified student loan payments

If you're processing the student loan payments outside Oracle Cloud HCM, create an information element to track those amounts in payroll.

1. Start the Element task.

2. Select Information as the primary classification.

3. Configure your element by answering all applicable template questions.

4. Select Submit.

5. Update the element to add the following.

   • Element eligibility

   • Qualified Loan Payment Amount input value

     1. Select Primary output value as the special purpose.

     2. Set the display sequence to 1.

     3. Select Money as the unit of measure.

     4. Select Display and Allow User Entry.

6. Select Submit.