This article guides you through the process of adding a one-time large 401k contribution to an employee's (EE) profile, without disrupting their ongoing 401k deduction schedule. This might be relevant in situations where an employee wishes to make a significant, one-off contribution to their 401k plan, in addition to their regular contributions.

Steps/Procedures:

1. Setting Up the One-Time Deduction:

   • Navigate to the 401k deduction section in the employee's profile.
   • Create a new deduction specifically for this one-time 401k contribution. Make sure to consider the client's matching strategy, which might need manual adjustment for this unique contribution.
   • Set the start and end date for this deduction to match the desired pay date. For example, if the one-time contribution should be deducted on December 22, 2023, set both the start and end date to 12/22/2023.

2. Adjusting the Ongoing Deduction Schedule:

   • After setting up the one-time deduction, return to the ongoing 401k deduction setup.
   • Adjust the start date of the ongoing deduction to the day after the one-time deduction. In our example, change the start date from 01/01/2023 to 12/23/2023.
   • Ensure that all other settings for the ongoing deduction remain as they were, to avoid any unintended changes to the employee’s regular deduction plan.

Result: With these changes, the system will recognize and process the one-time large 401k deduction on the specified date (12/22/2023). Immediately following this, the system will revert to recognizing the ongoing 401k deduction starting from 12/23/2023, ensuring a seamless transition between the one-time and regular contributions.

Troubleshooting:

• Incorrect Deduction Amounts: Double-check the deduction amounts and matching strategy settings if the deducted amount doesn’t match expectations.
• Deduction Not Applied: If the one-time deduction isn’t applied on the specified date, verify that the start and end dates were correctly entered.
• Ongoing Deduction Errors: Ensure the start date for the ongoing deduction is correctly set to the day after the one-time deduction to avoid overlaps or gaps in deduction schedules.

Related Resources/Links:

• Setting Up and Managing 401k Deductions
• Understanding Client Matching Strategies in 401k Plans