Issue/Symptom/Question

We recently met with the people who administer our 401k plan and gave us an option to implement a Roth with our plan. Setting up a Roth deduction is easy. However, our match piece would be on the combination of the two. For example our match is 5%. If someone elects 3% deduction into the 401k and 2% into the Roth the match would be on each deduction up to the 5%.

Applies To

PENTA for Windows

Payroll > Employees > Voluntary Deductions

Resolution/Fix/Answer

Currently, there is no ability to have a combined Max Matching % for deductions. The only combining of max amounts is in the Annual Limit. This would mean the match would be the same as the employee portion until the annual limit is met - which may result in over-matched percentage for any employee who leaves the company prior to the annual limit is reached.