Setting up a Roth 401K

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Nitsa Kazianis
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    We are in the process of setting up a Roth 401K plan. We currently have a regular 401K. There is a combined limit of 3.50% on the Matched Employer contributions. When entering this into Lawson it’s treating them independently. We need the system to look at them together. Does anyone know how we would set this up in Lawson? 

    Example:

    2% (401K) – Employer Matched Contribution = 1.5%

    2% (Roth 401K) – Employer Matched Contribution = 1% (The system is calculating this to be 1.5% and it should be 1%)

    4% combined = 2.5% - 1.5% = 1% would go to the Roth matched.  

    Any suggestions would be greatly appreciated.

    Thanks, Nitsa

    stephanie
    Veteran Member
    Posts: 330
    Veteran Member
      Our administrator requires us to have separate plans, so because of that we had to set up a custom calculation since the matches are on two different BN15s. There are some instructions on the Infor site on how to set up a combined plan (I don't have the document handy) - or I'm sure if you search this forum its posted here too -
      Nitsa Kazianis
      New Member
      Posts: 2
      New Member
        We do have separate plans set up as well i.e. 401K and Roth 401K. We need to combine just the Employer Match portion from each. How did you set up the custom calculation?
        stephanie
        Veteran Member
        Posts: 330
        Veteran Member
          I'm not a coder but on the custom calc on our match deduductions to check if the employee has specific DC deductions - so, if an employee is in our "regular" DC plan, they have ded A (flat dollar) or B (percent). If they are enrolled in the Roth, they will have ded C (flat dollar) or D (percent). If the employee has ded A, the match looks to see if the person also has C or D, and then would add the 2 amounts together and calculate the match on the sum. Yours may be be more challenging because you have a different match if it's regular or Roth - I wouldn't begin to know how to logically look at that.