We have added a Roth option to our 401k plan. I have set up the Group Code to include both 401k codes so the max contribution allowed will be stopped when the combined accounts reach the max amount. My question is how can we allow eligible employees to contribute catchup contributions? For example, the Group Code is set to the 2024 max of $23,000. Employees eligible to make catchup deductions can contribute $30,500. Previously, we would have just set the individual eligible employee's 401k card to the max deduction to $30,500. Will the Group Code now stop the deductions for these eligible employees at $23,000? Or will the $30,500 limit set on the eligible employee's card override the Group Code? What is the best way to insure employees can contribute the catchup deduction?
I think the group code will stop it, you can test that out in your test company quick based on your setup.
If you have an employee that is going to be part of the catch-up age group, it might be best to assign that employee its own group of codes and maximum different from the regular group then you should not run into this issue.
Thanks
Terry Heley
Microsoft
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