Savings Plan Calculations
Our system offer both a 403(b) plan (plan type 46) with before-tax only deductions and plan 457 (plan 49) with both before and after-tax deductions. both of these plan types use distinct special accumulators for the calculations.
The 403(b) deduction is taken first because of deduction priority schedule. The employee had limited regular earnings and this same amount was reflected in the special accumulator (i.e. $40,000) for both plan 403(b) and plan 457. It took the full amount for both plans which =< each special accumulator (plan 403(b) $20,500 and plan 57 took $39,500 because of catchup.
As long as the employee has sufficient net pay then it will take both deductions regardless of the earn codes for the pay period. Is this correct? Can the system be setup to take the full amount from plan 403(b) ($20,500) and only take the remining difference ($19,500) for plan 457 even though the different accumulators are used?