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Configuring PR Pre-Tax Deduction Groups

The PR Pre-Tax Deduction Groups form is primarily used for configuring 401k pre-tax deduction groups. By setting these limits, businesses can control when 401k calculations stop for each employee, contributions do not exceed legal thresholds.

Before you start​

  • Knowledge of current 401k contribution limits and regulations.

Steps​

  1. Open thePR Pre-Tax Deduction Groupsform.
  2. Enter the standard annual contribution limit for the 401k pre-tax group.
  3. Specify the catch-up annual contribution limit for eligible employees.
  4. Set the annual compensation limit, which is used for the 401k match compensation limit.
  5. These amounts are updated each year to reflect any changes in legal limits.

Notes​

  • These amounts are your responsibility to update each year, as failing to do so may result in non-compliance with federal regulations.