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How to work with Roth Catchup when Pretax Base limit is reached?
We are replacing all our deductions/elements for 401k with new ones using the "Deferred Comp 401k - SECURE 2.0" deduction category, to be live on Jan 1, 2026. We are testing setups now, and I've come across some situations.
Situation #1:
Current setups for pretax base and pretax catchup use:
Catchup Type: General Catch-Up ( Age >= 50 Years)
Take Overlimit Catchup = Never
Catch-Up Processing = Sequential
EE has 27% assigned to both pretax base and pretax catchup and meets pretax base limit in a payroll period and the overlimit amount goes to the pretax catchup element. The following pay period the full 27% goes to the catchup.
— it doesn't work this way with the new setups using the new deduction categories