The Qualified Plan Contribution section of the Batch Contribution editor allows for configuring how the contributions are illustrated to the retirement plan, including both pre-tax and Roth account values.
Show Current Contribution Column
Determines if the current contribution column for the paycheck is displayed.
| Note: | Typically this would be included, unless the value was not imported. |
Show Theoretical Maximum Contribution ("Quick Max") Column
This shows the maximum contribution the client can make to the retirement plan on an annual basis.
The Quick Max is the plan's annual contribution limit, including the over-50 catchup provision (if relevant) divided by the number of paychecks per year. It does not take into consideration year-to-date contributions or special catch-up provisions for 403(b) and 457 plans. (For 2017 the annual contribution limit for 401(k) plans is $18,000 plus an additional $6,000 for participants 50 and over.)
| Note: | The limits are determined by the type of retirement plan configured either in the Employer File editor or, if the employer file is using a custom retirement plan, in the Custom Retirement Plan editors. Plan limits limits can be overridden in the Custom Retirement Plan editor. |
Hide Contributions Above "Quick Max"
Checking this box excludes contribution values that are above the "Quick Max" (defined above) and can be excluded from the report.
Roth Account
Include Roth in Contribution Comparison
Check this box if the Roth account is included for increased contributions.
| Note: | When the Roth account is enabled, the Contribution Value Type (below) will be relative, meaning the increase in contributions will be relative to the participant's current contribution. |
Options for Contribution Values
This prompt determines how the contribution values (below) are considered for increased contributions.
Pre-Tax Only
Increases to contributions are only deposited to the pre-tax account.
Split Contribution between Accounts
The increase in contribution is split between the two accounts. For example, a 1% contribution offset would be split to both the pre-tax and Roth account, add a 0.5% to each account.
Use Offset on Both Accounts
Increase in contributions are applied to both accounts. For example, a 1% contribution offset would be applied to both the pre-tax and Roth account.
Increase Roth Account Only
All increases are only applied to the Roth account.
Proportional
Increases are applied proportionally two both accounts based on their current contribution.
When there are no current contributions
This will determine how to apply an increase to the contributions when Proportional is selected for Options for Contribution Value and their are no pre-tax contributions.
Increase Pre-Tax
The increase is only applied to the pre-tax account.
Increase Roth
The Increase is only applied to the Roth account.
Increase Both Equally
The increase is split equally between the pre-tax and Roth account.
Retirement Contribution Values Displayed as
This determines how the increased contribution values are displayed: either a Percent of account (more typical) or a Dollar value.
Contribution Value Type
This prompt is only available if the current contribution are Roth account is not included in the contribution comparison (above). It determines if the contribution values entered in the grid (to the right) are relative to the participants current contribution (added to) or absolute values.
When Offsetting Contribution Values
This prompt is only available if Relative Values is selected as the Contribution Value Type (above). It determines if the new contribution value is adjusted when the Contribution Offsets (entered in the grid to the right) are added to the current contribution.
Add Offset, do not Round
No rounding occurs to the new contribution value.
Round Value
The new contribution value is rounded to the nearest percentage. For example, if the participant is contributing 3.25%, and the increase in contribution is 1%, the new value would be rounded from 4.25% to 4%. For half percents (x.5%), Banker's Rounding is used (the value is rounded to the even number).
Round Value Up
The new contribution value is rounded up to the nearest percentage. For example, if the participant is contributing 3.25%, and the increase in contribution is 1%, the new value would be rounded up from 4.25% up to 5%.
Hide Illustrations Less than the Current Contribution Values
If Absolute Values is selected as the Contribution Value Type (above), some of the contributions may be less than the current. Checking this box will hide the contributions lower than the current contribution.
# of Contributions to Illustrate
Enter the number of contributions to illustrate. There are a maximum of 8 contributions that can be illustrated. If the Current Contribution and/or Theoretical Maximum Contribution check boxes (first two options in this dialog) are checked, these will be part of the 8 columns.
Contribution Offset/Levels
Enter the Contribution Offset (or Contribution Levels) for the additional contribution columns.
| Note: | Contributions within 0.10% of other contributions will be not included in the reports. For example, if the Quick Max column is included (discussed above) and is 20.07% of pay, and a 20% column was included in this list, than the 20% column would not be included in the report. |
