Company 401k is incorrectly dealing with over 50 catch up contribution

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Montacute
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Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Tue Aug 29, 2017 6:24 pm

The IRS has been clear about the over 50 catch-up contribution (limit of 6,000) not counting towards the 54,000 overall contribution limit. Despite me sending IRS links to my company plan administrator, they continue to insist that the over 50 catch-up contribution counts toward the 54,000 overall limit. They have sent me their incorrect interpretation twice now in writing. My question is what do I do? These people are idiots. How do I force them to allow me the correct 60,000 limit? I want to have it for my mega-backdoor Roth. Is there a way to report them to the IRS? Do I have to sue them? I cannot get them to understand they are wrong.

mhalley
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by mhalley » Tue Aug 29, 2017 6:34 pm

Maybe go to the next person up the corporate ladder who is above the hr administrator.
I think Ebsa is where you can file a complaint.
https://www.dol.gov/agencies/ebsa/about ... n/ask-ebsa
Last edited by mhalley on Tue Aug 29, 2017 6:39 pm, edited 1 time in total.

Dude2
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Dude2 » Tue Aug 29, 2017 6:37 pm

Just take a breath. It can't be that big a deal in the grand scheme of things. People on this forum have advised me that we who are even allowed to contribute (at all) after tax are in the minority. We should be happy we have what we have.

The wheels turn slowly. You've done your job to report it to them. Maybe getting some other interested parties to do the same would help, but try not to let it get to you.

123
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by 123 » Tue Aug 29, 2017 6:44 pm

You can always express yourself with your feet and go to work for a different company/organization that handles the over 50 catch-up contribution appropriately.
The closest helping hand is at the end of your own arm.

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Thrifty Femme
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Thrifty Femme » Tue Aug 29, 2017 6:56 pm

Are they actually stopping your contributions?

ERISA Stone
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by ERISA Stone » Tue Aug 29, 2017 7:18 pm

Can you provide dialogue between you and your company (and remove any identifying information) so we can provide feedback?

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neurosphere
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by neurosphere » Tue Aug 29, 2017 8:25 pm

Montacute wrote:
Tue Aug 29, 2017 6:24 pm
The IRS has been clear about the over 50 catch-up contribution (limit of 6,000) not counting towards the 54,000 overall contribution limit. Despite me sending IRS links to my company plan administrator, they continue to insist that the over 50 catch-up contribution counts toward the 54,000 overall limit. They have sent me their incorrect interpretation twice now in writing. My question is what do I do? These people are idiots. How do I force them to allow me the correct 60,000 limit? I want to have it for my mega-backdoor Roth. Is there a way to report them to the IRS? Do I have to sue them? I cannot get them to understand they are wrong.
I'm wondering...the IRS ALLOWS up to $54,000 ($60,000 with catch up). But MUST a n employer allow it? The IRS sets limits. Can't the employer set lower limits?

So while their interpretation is incorrect, they may be within their rights no cap contributions for all at $54,000, catch up or not. I'm sure SURE if they can do that (e.g. take catch up contributions into account) because that would create two different limits essentially, one for those under 50, and another limit for those over 50.

It's frustrating however if your employer did not intend to do this, and the cap is simply a misreading of the law.
-- Real name: Sotirios Keros. If you have to ask "Is a Target Retirement fund right for me?", the answer is yes.

Spirit Rider
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Spirit Rider » Tue Aug 29, 2017 8:47 pm

neurosphere wrote:
Tue Aug 29, 2017 8:25 pm
I'm wondering...the IRS ALLOWS up to $54,000 ($60,000 with catch up). But MUST a n employer allow it? The IRS sets limits. Can't the employer set lower limits?
Yes, the catch-up contribution is an optional feature. An employer does not have to offer catch-up contributions.
So while their interpretation is incorrect, they may be within their rights no cap contributions for all at $54,000, catch up or not. I'm sure SURE if they can do that (e.g. take catch up contributions into account) because that would create two different limits essentially, one for those under 50, and another limit for those over 50.
I'm not so sure that the employer's interpretation is wrong. From the OP it is not clear that the catch-up contribution is being used. Even though it is called a catch-up contribution, it is really a $6,000 catch-up deferral only. The annual addition remains unchanged at $54,000, you are simply allowed an additional $6,000 deferral in addition to the $18,000 deferral limit and this does not count against the $54,000 annual addition limit.

Technically, there is no $60,000 limit. If only an $18K deferral is being made, the maximum employee after-tax contribution would still be $54,000 - employer contributions - forfeitures (if applicable) - employee deferral. If you do not make a catch-up contribution, the $6,000 is not available for after-tax contributions.
It's frustrating however if your employer did not intend to do this, and the cap is simply a misreading of the law.
Clarification is needed on whether the catch-up contribution is being made. If that is true, then the employer should not be including that in the $54,000.

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Tue Aug 29, 2017 9:37 pm

Let me get the exact wording I received back. My company definitely allows the 6000 catch up provision. They even call it that--over 50 catch up.
Also, yes, they automatically stop employee contributions once the 54,000 limit is reached. They have already stopped my catch up contribution because I have reached the 6,000 limit.

The site is down for maintenance so I cannot get their exact wording. But it is very close to "The 6,000 catch up provision counts toward the overall IRS contribution limit of 54,000". This is in response to me pointing out that the 6,000 catch up provision should not count towards the overall IRS contribution limit of 54,000. Two investigations have said I am wrong and it does count.
Last edited by Montacute on Tue Aug 29, 2017 9:48 pm, edited 1 time in total.

Spirit Rider
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Spirit Rider » Tue Aug 29, 2017 9:41 pm

Then they should not include the catch-up contribution in the $54,000 annual limit.

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Tue Aug 29, 2017 10:02 pm

I know they are wrong. I asked what the appeal process is and was told there is not one. I will notify the HR Person in charge of Benefits and beyond that will try the EBSA complaint. Thank you for that. It has been very frustrating to try to get them to just fix this. It is a massive fortune 500 company and the bureaucracy is intense. I find it hard to believe I am the first person to raise this issue when there are tens and tens and tens of thousands of employees.

TIAX
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by TIAX » Tue Aug 29, 2017 10:59 pm

Montacute wrote:
Tue Aug 29, 2017 10:02 pm
I know they are wrong. I asked what the appeal process is and was told there is not one. I will notify the HR Person in charge of Benefits and beyond that will try the EBSA complaint. Thank you for that. It has been very frustrating to try to get them to just fix this. It is a massive fortune 500 company and the bureaucracy is intense. I find it hard to believe I am the first person to raise this issue when there are tens and tens and tens of thousands of employees.
Did you review the Plan Document (not the SPD)?

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Tue Aug 29, 2017 11:10 pm

TIAX wrote:
Tue Aug 29, 2017 10:59 pm
Montacute wrote:
Tue Aug 29, 2017 10:02 pm
I know they are wrong. I asked what the appeal process is and was told there is not one. I will notify the HR Person in charge of Benefits and beyond that will try the EBSA complaint. Thank you for that. It has been very frustrating to try to get them to just fix this. It is a massive fortune 500 company and the bureaucracy is intense. I find it hard to believe I am the first person to raise this issue when there are tens and tens and tens of thousands of employees.
Did you review the Plan Document (not the SPD)?
No--just something called the Plan Brochure. I will look for the Plan Document.

TIAX
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by TIAX » Tue Aug 29, 2017 11:12 pm

Montacute wrote:
Tue Aug 29, 2017 11:10 pm
TIAX wrote:
Tue Aug 29, 2017 10:59 pm
Montacute wrote:
Tue Aug 29, 2017 10:02 pm
I know they are wrong. I asked what the appeal process is and was told there is not one. I will notify the HR Person in charge of Benefits and beyond that will try the EBSA complaint. Thank you for that. It has been very frustrating to try to get them to just fix this. It is a massive fortune 500 company and the bureaucracy is intense. I find it hard to believe I am the first person to raise this issue when there are tens and tens and tens of thousands of employees.
Did you review the Plan Document (not the SPD)?
No--just something called the Plan Brochure. I will look for the Plan Document.
You'll need to ask HR for it. It will be a 20+ page document.

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Wed Aug 30, 2017 1:09 am

TIAX wrote:
Tue Aug 29, 2017 11:12 pm
Montacute wrote:
Tue Aug 29, 2017 11:10 pm
TIAX wrote:
Tue Aug 29, 2017 10:59 pm
Montacute wrote:
Tue Aug 29, 2017 10:02 pm
I know they are wrong. I asked what the appeal process is and was told there is not one. I will notify the HR Person in charge of Benefits and beyond that will try the EBSA complaint. Thank you for that. It has been very frustrating to try to get them to just fix this. It is a massive fortune 500 company and the bureaucracy is intense. I find it hard to believe I am the first person to raise this issue when there are tens and tens and tens of thousands of employees.
Did you review the Plan Document (not the SPD)?
No--just something called the Plan Brochure. I will look for the Plan Document.
You'll need to ask HR for it. It will be a 20+ page document.
I will. Thank you for the suggestion.

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celia
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by celia » Wed Aug 30, 2017 1:38 am

Montacute wrote:
Tue Aug 29, 2017 10:02 pm
I find it hard to believe I am the first person to raise this issue when there are tens and tens and tens of thousands of employees.
But how many of those employees are already maxing out their contribution and
are over age 50 and
are Bogleheads? :D

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Wed Aug 30, 2017 2:14 pm

Could I really be the only one that fits all that??

Frustrations continue. I called HR to ask for the Plan Document and they referred me to the Plan Administrator (Hewitt) and then Hewitt tried to refer me to the SPD. I said no, I wanted the Plan Document but they did not understand what that was. I read to them from the SPD where it said in the result of a conflict between the SPD and the Official Plan Document, the Official Plan Document would control. They still did not understand what the Plan Document was and put in a job ticket to try to find out. Good grief!

Spirit Rider
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Spirit Rider » Wed Aug 30, 2017 3:03 pm

Oh come on! You are really getting the run around now. Hewitt is the #1 TPA in terms of number of participants. The janitor should know what a plan document is.

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Wed Aug 30, 2017 4:08 pm

Spirit Rider wrote:
Wed Aug 30, 2017 3:03 pm
Oh come on! You are really getting the run around now. Hewitt is the #1 TPA in terms of number of participants. The janitor should know what a plan document is.
I am really beyond frustrated with the lack of quality of their representatives. She could not get it in her head that "Plan Document" was a term of art, even after I read her the language in the SPD. She kept saying all they had there was the SPD!
I should get an answer to the job ticket she created within 2 days. :x

If Hewitt is #1, how on earth can they not understand that the 6,000 over 50 catch up does not count towards the overall 54,000 limit?? They have been just awful. I sent them the IRS links and today was told they are not allowed to look at any links that are sent externally. But, but, it's the IRS website!

I feel Hewitt deserves punishment for giving me this much grief.

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Shackleton
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Shackleton » Wed Aug 30, 2017 4:12 pm

Here is an example that, while not exactly like your situation, does show that amounts above $54k are allowed and the excess is deemed to be the catch-up contribution:

https://www.irs.gov/retirement-plans/40 ... ligibility
(See the third example just before "Audit Tips".)

Maybe that will help in your discussions with HR?
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Wed Aug 30, 2017 5:36 pm

Shackleton wrote:
Wed Aug 30, 2017 4:12 pm
Here is an example that, while not exactly like your situation, does show that amounts above $54k are allowed and the excess is deemed to be the catch-up contribution:

https://www.irs.gov/retirement-plans/40 ... ligibility
(See the third example just before "Audit Tips".)

Maybe that will help in your discussions with HR?
Thank you. I will hold onto that link. I think I may have to file a grievance.

I sent Hewitt this IRS link, but they will not read it. They told me they are not permitted to read any external links!! #2 under contribution limits actually says the limit is 60,000 including catch-up contributions!!

https://www.irs.gov/retirement-plans/pl ... ion-limits

retiredjg
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by retiredjg » Wed Aug 30, 2017 6:26 pm

I can understand they may not be allowed to follow links. Lower level employees may have restrictions and occasionally a link may be dangerous.

Have you tried to copy and paste the contents of the link into a message? And request/demand to speak to someone in higher authority?

A grievance may be in order but try not to burn bridges as you are getting there. :happy

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Wed Aug 30, 2017 8:33 pm

retiredjg wrote:
Wed Aug 30, 2017 6:26 pm
I can understand they may not be allowed to follow links. Lower level employees may have restrictions and occasionally a link may be dangerous.

Have you tried to copy and paste the contents of the link into a message? And request/demand to speak to someone in higher authority?

A grievance may be in order but try not to burn bridges as you are getting there. :happy
I did post the IRS link in a message when I got the response that the over 50 catch up counted towards the overall limit. Then I called and got a supervisor and that is when I was told they are not allowed to look at external links. He promised a new investigation but I do not have high hopes that the third time will be the charm, especially since I insisted he write down the link as I read it to him and he could not spell "profit" and asked me what a hyphen was. Do people really not know what a hyphen is anymore?

Yes, I have thought about not pissing anyone off. The worst outcome would be for them to discontinue the mega-backdoor Roth opportunity.

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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by TropikThunder » Wed Aug 30, 2017 9:41 pm

Spirit Rider wrote:
Tue Aug 29, 2017 8:47 pm
Yes, the catch-up contribution is an optional feature. An employer does not have to offer catch-up contributions.
I'm confused on how this can be an "optional feature" when there's explicit IRS regulations that allow it.
Spirit Rider wrote:
Tue Aug 29, 2017 8:47 pm
Technically, there is no $60,000 limit
The IRS would disagree with you:
Overall limit on contributions

Total annual contributions (annual additions) to all of your accounts in plans maintained by one employer (and any related employer) are limited. The limit applies to the total of:
  • elective deferrals
    employer matching contributions
    employer nonelective contributions
    allocations of forfeitures
The annual additions paid to a participant’s account cannot exceed the lesser of:
  • 100% of the participant's compensation, or
    $54,000 ($60,000 including catch-up contributions) for 2017
https://www.irs.gov/retirement-plans/pl ... ion-limits

ERISA Stone
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by ERISA Stone » Wed Aug 30, 2017 10:13 pm

TropikThunder wrote:
Wed Aug 30, 2017 9:41 pm
Spirit Rider wrote:
Tue Aug 29, 2017 8:47 pm
Yes, the catch-up contribution is an optional feature. An employer does not have to offer catch-up contributions.
I'm confused on how this can be an "optional feature" when there's explicit IRS regulations that allow it.
Spirit Rider wrote:
Tue Aug 29, 2017 8:47 pm
Technically, there is no $60,000 limit
The IRS would disagree with you:
Overall limit on contributions

Total annual contributions (annual additions) to all of your accounts in plans maintained by one employer (and any related employer) are limited. The limit applies to the total of:
  • elective deferrals
    employer matching contributions
    employer nonelective contributions
    allocations of forfeitures
The annual additions paid to a participant’s account cannot exceed the lesser of:
  • 100% of the participant's compensation, or
    $54,000 ($60,000 including catch-up contributions) for 2017
https://www.irs.gov/retirement-plans/pl ... ion-limits
Virtually every feature of a 401k plan is optional. For example, a plan doesn't have to allow the full $18k in deferrals if they don't want. There's no good reason to do that, just like there's no good reason not to allow catch-up contributions. But the plan still has to allow for it.

The IRS may just be putting it in layman's terms. The regs say the contributions are not taken into account in applying the limits. It doesn't say the limit is increased. Either way, it's just semantics. If you are eligible for catch up, you can defer an additional amount that is not counted against the 415 limit.
d)Treatment of catch-up contributions -

(1)Contributions not taken into account for certain limits. Catch-up contributions are not taken into account in applying the limits of section 401(a)(30), 402(h), 403(b), 408, 415(c), or 457(b)(2) (determined without regard to section 457(b)(3)) to other contributions or benefits under an applicable employer plan or any other plan of the employer.

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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by TropikThunder » Wed Aug 30, 2017 10:22 pm

ERISA Stone wrote:
Wed Aug 30, 2017 10:13 pm
Virtually every feature of a 401k plan is optional. For example, a plan doesn't have to allow the full $18k in deferrals if they don't want. There's no good reason to do that, just like there's no good reason not to allow catch-up contributions. But the plan still has to allow for it.
Thanks for the clarification. I had only thought of the "plan has to allow for it" clause when it's applied to, for example, in service roll-overs and post-tax contributions. I didn't realize it applied to *any* facet of the plan. As you said, there's no good reason for a plan to omit allowed features, but I guess they can.

ERISA Stone
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by ERISA Stone » Wed Aug 30, 2017 10:29 pm

TropikThunder wrote:
Wed Aug 30, 2017 10:22 pm
ERISA Stone wrote:
Wed Aug 30, 2017 10:13 pm
Virtually every feature of a 401k plan is optional. For example, a plan doesn't have to allow the full $18k in deferrals if they don't want. There's no good reason to do that, just like there's no good reason not to allow catch-up contributions. But the plan still has to allow for it.
Thanks for the clarification. I had only thought of the "plan has to allow for it" clause when it's applied to, for example, in service roll-overs and post-tax contributions. I didn't realize it applied to *any* facet of the plan. As you said, there's no good reason for a plan to omit allowed features, but I guess they can.
My favorite anecdote is I had a client with a profit sharing 401k plan that did not allow profit sharing contributions. Profit sharing contributions are completely discretionary (unless the sponsor chooses otherwise) and there are plenty of plans who never use the feature. For whatever reason, it made the owner nervous to allow the feature so he removed the option.

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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Spirit Rider » Wed Aug 30, 2017 10:35 pm

ERISA Stone wrote:
Wed Aug 30, 2017 10:13 pm
TropikThunder wrote:
Wed Aug 30, 2017 9:41 pm
Spirit Rider wrote:
Tue Aug 29, 2017 8:47 pm
Technically, there is no $60,000 limit
The IRS would disagree with you:
Overall limit on contributions
  • 100% of the participant's compensation, or
    $54,000 ($60,000 including catch-up contributions) for 2017
The IRS may just be putting it in layman's terms. The regs say the contributions are not taken into account in applying the limits. It doesn't say the limit is increased. Either way, it's just semantics. If you are eligible for catch up, you can defer an additional amount that is not counted against the 415 limit.
A reason for not including the catch-up contribution in the annual limit is that it may cause people to think there is a higher $60,000 limit >= age 65 even when a catch-up is not made. This is incorrect and could cause people to make excess annual additions, especially with employee after-tax contributions.

ERISA Stone
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by ERISA Stone » Wed Aug 30, 2017 10:44 pm

Spirit Rider wrote:
Wed Aug 30, 2017 10:35 pm
ERISA Stone wrote:
Wed Aug 30, 2017 10:13 pm
TropikThunder wrote:
Wed Aug 30, 2017 9:41 pm
Spirit Rider wrote:
Tue Aug 29, 2017 8:47 pm
Technically, there is no $60,000 limit
The IRS would disagree with you:
Overall limit on contributions
  • 100% of the participant's compensation, or
    $54,000 ($60,000 including catch-up contributions) for 2017
The IRS may just be putting it in layman's terms. The regs say the contributions are not taken into account in applying the limits. It doesn't say the limit is increased. Either way, it's just semantics. If you are eligible for catch up, you can defer an additional amount that is not counted against the 415 limit.
A reason for not including the catch-up contribution in the annual limit is that it may cause people to think there is a higher $60,000 limit >= age 65 even when a catch-up is not made. This is incorrect and could cause people to make excess annual additions, especially with employee after-tax contributions.
Good point that I had ignored.

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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Earl Lemongrab » Thu Aug 31, 2017 10:05 am

ERISA Stone wrote:
Wed Aug 30, 2017 10:13 pm
Virtually every feature of a 401k plan is optional. For example, a plan doesn't have to allow the full $18k in deferrals if they don't want. There's no good reason to do that, just like there's no good reason not to allow catch-up contributions. But the plan still has to allow for it.
Well, Megacorp restricts contributions to a percentage of salary. Currently that's at 30%. So anyone making less than 60k would not be able to contribute the full 18k.
This week's fortune cookie: "The stock market may be your ticket to success." I sure hope so!

Dottie57
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Dottie57 » Thu Aug 31, 2017 10:46 am

My megacorp employer allows up to 50% of pay to go into 401k. No ability to convert from trad 401k to Roth 401k within plan. No mega bac :| kdoor .

Montacute
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by Montacute » Thu Aug 31, 2017 7:41 pm

SUCCESS!!!
Never give up!
My request for the Plan Document resulted in a call from a Benefits VP at the company to ask if she could e-mail it to me and if I had any other concerns. I explained I did, as well as the run-around I had been getting from Hewitt. She promised to have a talk with them about their service and to make sure they understood that the over 50-catch up did not count towards the overall 415 limit. At last!!! whew!!

Thank you again for the wonderful suggestion to request the Plan Document. Looks like that made them worry they were dealing with someone who knew the rules! :D

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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by neurosphere » Fri Sep 01, 2017 9:58 am

Montacute wrote:
Thu Aug 31, 2017 7:41 pm
SUCCESS!!!
Great news! I had suspected that one explanation was that the plan document limited the contributions (although allowed by the IRS). And folks were interpreting that as "not allowed" by the IRS.

But the other, more likely and now true, explanation was that it was all a mistake.

Good job on being persistent. And hat tip to the Bogleheads community for ancillary support. :wink:
-- Real name: Sotirios Keros. If you have to ask "Is a Target Retirement fund right for me?", the answer is yes.

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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by neurosphere » Fri Sep 01, 2017 10:02 am

Montacute wrote:
Thu Aug 31, 2017 7:41 pm
My request for the Plan Document...
I'm curious about the specific relevant language in the plan document. Did you find it after talking to the VP?

You know, I've never read a plan document (only the summary). I assume that it is must be provided upon request to all 401k participants? I had requested one on the past, simply for curiosity, and got the runaround (that's not something we give out, etc) and didn't push the issue because I had no need other than my general education, but then I moved onto something else.

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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by TIAX » Sat Sep 02, 2017 11:07 pm

Montacute wrote:
Thu Aug 31, 2017 7:41 pm
SUCCESS!!!
Never give up!
My request for the Plan Document resulted in a call from a Benefits VP at the company to ask if she could e-mail it to me and if I had any other concerns. I explained I did, as well as the run-around I had been getting from Hewitt. She promised to have a talk with them about their service and to make sure they understood that the over 50-catch up did not count towards the overall 415 limit. At last!!! whew!!

Thank you again for the wonderful suggestion to request the Plan Document. Looks like that made them worry they were dealing with someone who knew the rules! :D
Congratulations!

TIAX
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Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Post by TIAX » Sat Sep 02, 2017 11:08 pm

neurosphere wrote:
Fri Sep 01, 2017 10:02 am
Montacute wrote:
Thu Aug 31, 2017 7:41 pm
My request for the Plan Document...
I'm curious about the specific relevant language in the plan document. Did you find it after talking to the VP?

You know, I've never read a plan document (only the summary). I assume that it is must be provided upon request to all 401k participants? I had requested one on the past, simply for curiosity, and got the runaround (that's not something we give out, etc) and didn't push the issue because I had no need other than my general education, but then I moved onto something else.
The plan document is never provided to participants unless they ask for it. It's pretty important to review it in case the SPD is incorrect (in which case the plan document controls).

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