401(k) Maximum Deferral Amount

I started midway through this year and the person before me had the 401k stop deducting employee deferrals at the point of $18,000.  However, the limit this year is actually $18,500 (and $19,000 for 2019).

Since I did not set up this for the current year and have not done it before ever, my questions are twofold.  First, how do I change the limit so employees at $18,000 still get deferrals on their last paycheck so they are not stuck at the $18k limit?  Second, how do I update it for 2019 so it will allow $19k in employee deferrals?  Thanks for ANY suggestions.  Thanks!

  • 0

    Hi Sara71,

    There are two methods for limits on deductions. The first is in Setup, Employees, Deducts. Scroll to the right and you will see a Limit and Limit Period column. You may see 18000 and YTD in those fields.

    The second is to have a formula for 401K in Setup, Deductions,  that has a parameter IF(LOOKUP(YTD Deduction [PR Employee Deduct], Employee [PR Check], "401K") < 18000...)

    In either case, you can change the 18000 to 18500 and then to 19000.