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Need to create a new element similar to 401k.
Our existing system has Traditional 401k and Roth elements configured with it's respective IRS limits.
The Traditional 401K element is a tax deferred element. The Roth element is similar to the traditional 401K element but the way funds are taxed is different. Your money is taxed before it's contributed to your balance.
IRS institutes a cap on joint contributions of you and your employer and the limit for this is 69000 USD or 100% of an employee's compensation.
We are trying to create a third element for after-tax.
The traditional 401K element and the Roth element have IRS contribution limits of 23000 USD. We are trying to understand how it has been configured. I want to understand how to give this element a limit and what element classification name it would essentially fall into. Can we use the Roth element classification name? Would the limit be automatically enforced if we give the similar element classification as that of Roth?