After limit defined contribution override amounts
Use the fields in the After Limit Defined Contribution Override Amount section located at to specify contribution limits for employees who contribute on an after tax basis after the limit is met. Use Employee USERRA Parameters for reporting current year USERRA amounts in previous years.
The contribution limits are used for employees who have continued their contributions to a
retirement plan after reaching the contribution limit. If the employee has contributed to a
pretax retirement plan (401k or 403b) along with a Roth plan (Roth 401k or Roth 403b), then
specify the amount to be reported in Box 12 Code D, E, AA, BB, and EE. For example, during
2008 an employee has an annual salary of $100,000.00 and has contributed 10% to 401k
($10,000.00) and 10% to Roth 401k ($10,000.00). The contribution limit for 2021 is $19,5000.
Use Employee Year End Parameters to identify the portion of the 401k and Roth 401k that was
taken up to the contribution limit. For the 401k Pretax field, specify
$9,750.00 and for the 401k Roth field, specify $9,750.00. (If the
employee only contributed 401k, then specify $19,500.00 in the 401k
Pretax field).
Note: This applies only if
the deduction code is configured with the Apply Contribution Annual
Limits check box not selected and Allow After Limit Defined
Contributions set to Yes – Continue Deductions as
After-Tax and an employee has contributed over the limit. In this case, the
employee's deduction history for 401k Tax Status (01), 403b Tax Status (02), Roth 401k Tax
Status (16), and Roth 403b Tax Status (17) deduction codes include both the before limit
deduction amounts and the after limit deduction amounts.
For year-end reporting programs, only the before limit deduction amounts should be reported by W-2 Reporting in Box 12 or by EFW2 Reporting in the applicable fields in the EFW2 Code RW and RT records.