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Configuring PR Pre-Tax Deduction Groups

PR Pre-Tax Deduction Groups combine separate pre-tax deductions under one set of annual limits. Use this for 401(k) / Roth and any other pre-tax deductions that share IRS (or plan) limits, not only a single 401(k) code.

Before you start​

  • Pre-tax Deduction codes exist in PR Deductions and Liabilities with Pre-Tax Deduction and E-Employee set so Pre-Tax Group is enabled.
  • Current-year contribution, catch-up, and compensation limits are known from your plan / IRS guidance (Trimble form help does not publish dollar amounts).

Steps​

  1. Open PR Pre-Tax Deduction Groups.
  2. Create the group and assign member pre-tax deduction codes.
  3. Enter the four limit fields:
    • Standard Contribution Limit: annual employee contribution limit, including standard and Roth 401(k) employee contributions that share the group.
    • Catch-up Contribution Limit #1: additional limit for employees who meet current IRS catch-up age requirements.
    • Compensation Limit: annual compensation limit used for 401(k) employer-match liabilities.
    • Catch-up Contribution Limit #2: Secure Act 2.0 higher catch-up for a specified age range.
  4. Catch-up #2 / Secure Act 2.0 behavior: Vista applies and reverts the higher limit from the employee's age as of December 31.
    • Example with min age 60 and max age 63: the higher limit starts in January of the year the employee turns 60; standard catch-up resumes in January of the year they turn 64.
  5. Reference the group from each member deduction (and from 401(k) match liabilities that share the group) on PR Deductions/Liabilities.
  6. Save. Update limits when plan or IRS limits change for the new year (implementation practice; keep payroll responsible for the amounts).

Notes​