Self-Service 401(k) Match Management on the Web Portal

CLICK HERE to download this guide with screenshots

Purpose: To manage your company’s 401k match using PlanSource’s Custom Employer Contribution web-portal feature. The custom feature allows you to manage your 401k match. Note: to access the feature, users must be an admin, and have the New Features role added to their security profile.

We recommend reviewing your earning codes to ensure they’re included in the contribution to deferred compensation. For assistance on reviewing the earning codes, CLICK HERE:

Process:

1. To review the match rule configuration in the web: Navigate to System Configuration > Employer Contribution RulesClick on the “Combined 401K/Roth Match” hyperlink.
2. The EE contribution codes configured by PlanSource will display under the, “Assigned Deduction/Benefit Plans” section. If there are codes missing or population which should not be there, please let PlanSource know to update the configuration on the specific code(s).
3. If you have access to update your own deduction codes, then please click here to review how the EE and ER contribution codes should be configured for the custom employer contribution feature to work as expected.
4. The match formula is configured in the “Tiers” section. In the below example, the ER match is 100% up to 4%; which equals a 4% cap value.
5. To add a second tier, click add, enter a contribution and up to percent, then save.
6. In this example, the match is 100% of 3%; then 50% of an additional 2 %, for a cap value of 4%.
7. The cap value must always equal the tier levels. (100% of 3 = 3 + 50% of 2 = 1; =4%). Otherwise you’ll receive an error, as shown below.

Note: If this is the first time you will be offering 401k match to your employees, please ensure the 401k match deduction code (401KM) is added to the appropriate deduction group(s), 401KM is marked as auto-add for the deduction group(s), and add the deduction to existing employees’ records.

How To Configure EE and ER Contribution Codes for the Employer Contribution Custom Feature

Navigate to Menu > System Configuration > Business Rules > Search for “Deduction/Benefit Plans” > Click on hyperlink > click on desired deduction code

For additional assistance on setting up deduction codes, CLICK HERE:

Employee Contribution Deduction Setup:

Main Tab

1. Must have a supported Tax Category
   • 401K – Section 401K
   • 401CU – 401(k) Catchup Contributin
   • 401KCB – Sec. 401k Comb. Base and Catchup
   • R401CU – Roth 401k Catch-up
   • R401K – Roth 401(k)
   • R401CB – Roth 401k combined
2. Must have a priority less than 999
3. The Allow Partial Deduction must be selected
4. The Uncollected to Arrears must be selected

Calculation Tab

1. The employee calculation amount Must be one of the following employee calculation methods:
   • Def comp incl $ * percent
   • Flat Amount
2. The employer calculation amount must be Expression, or Expression (calc last)
   • PlanSource reccomends Expression (calc last)
3. The expression selected must me “Match Rule 1”

Employer Contribution Deduction Code (401KM) Setup:

1. Must have a supported Tax Category
   • 401K – Section 401K
   • 401CU – 401(k) Catchup Contributin
   • 401KCB – Sec. 401k Comb. Base and Catchup
   • R401CU – Roth 401k Catch-up
   • R401K – Roth 401(k)
   • R401CB – Roth 401k combined
2. Priority must be 999
3. The Allow Partial Deduction must be selected
4. The Uncollected to Arrears must be selected

Calculation Tab

1. The employer calculation method must be Expression, or Expression (calc last)
   • PlanSource reccomends Expression (calc last)
2. The expression selected must me “ER Match Rule 1”