401k set up question
Match amount = the lesser of 3% of employee's eligible compensation OR 50% of the employee's 401K + Roth contributions
Other info:
Our company will match 50 cents on every dollar that an employee contributes to 401k or Roth accounts up to 6% of their eligible compensation.
I would like to set up one dba for 401k employee contributions and one dba for Roth employee contributions. The employee can contribute more than 6% (actually up to 50%) to either or a combination of these dbas; however, the company match should never be more than 3% of their total compensation, or 50% of whatever they contribute to 401k and Roth if it's less than a total of 6%.