How do I handle a non-calendar year plan on ftw so that the 402(g) limit and catch-up contributions are calculated correctly? How do I handle a non-calendar year plan on ftw so that the 402(g) limit and catch-up contributions are calculated correctly?

How do I handle a non-calendar year plan on ftw so that the 402(g) limit and catch-up contributions are calculated correctly?

Aimee Nash Aimee Nash

Our system handles catch-ups a little differently from other software. Catchup amounts are not imported/entered separately from regular contributions; the system determines what is catch-up and what is regular.

Follow the steps below when setting up a fiscal year plan on ftwilliam.com:

Select the grid: ‘* ftw Primary 3 Census Fiscal Plan Year’ as your primary census grid – you can customize it if you wish to remove unused employer contribution columns. This grid has two additional columns which you will need to populate each year:

R: 401(k) PreCalYr  -  this is used for 401(k) deferrals, including catch-ups, made prior to 1/1 in the plan year. For a fiscal year plan on a 10/1/2017 thru 9/30/2018 plan year, this period would be the 10/1/2017 thru 12/31/2017.

R: Roth PreCalYr  - this is used for Roth deferrals, including catch-ups, made prior to 1/1 in the plan year. For a fiscal year plan on a 10/1/2017 thru 9/30/2016 plan year, this period would be the 10/1/2017 thru 12/31/2018.

The first 401(k) and Roth fields should be populated with the deferrals or Roth contributions for the full plan year.

Add the standard first year supplemental grid – called * ftw First Year Supplemental Census Grid – on the Other Imports/Exports/Reports screen. There are two fields on this grid that you should populate for the first year in ftwilliam:

R: Catch-Up 402g Pre – this is for catch-ups made in the calendar year ending in the current plan year. For a fiscal year plan on a 10/1/2017 thru 9/30/2018 plan year, this period would be the 1/1 thru 12/31/2017.

R: Elective Deferral 402g Excess Pre – this is used rarely; it’s for excess deferrals applicable to the calendar year ending in the current plan year. For a fiscal year plan on a 10/1/2017 thru 9/30/2018 plan year, this period would be the 1/1 thru 12/31/2017 – so if someone had deferred $25,000 in the calendar year 2017 you would enter $1000 in this column.

Add comment

Please sign in to leave a comment.