Clarification on Secure Act 2.0 processes - Update of Annual Limit Ages 60-63

Hello,

I am doing some testing on Secure Act 2.0 specifically around limits and taxable wages.

If a person is between the ages of 60-63 and enrolled in 401K and 401K CU (not RothCU) and they elect the higher limit of say 10,000, I can run the R073223 to update the Group Annual Limit 2 field which it does.

I update my PDBA History to have over the Regular Annual Limit of 7500 for 2024 and run a test, I would expect to see excludable for my deduction amount over the $7500 limit, but it is not excluding it at all. Shouldn't the higher 401K Wage limit reduce the employees taxable wage by the deduction amount for Federal A? This client has the August Vertex update that allows for the higher wage amount of $11500 per year.