BN - Reaching the Limit with Multiple Vendors
Employees are allowed to enroll in multiple Tax Sheltered Annuity plans. All TSA plans combined have an annual IRS maximum that cannot be exceeded. A monthly report will be generated to monitor this.
Procedure At-a-GlanceCategory: Process
Audience: Campus Benefits Administrator
Overarching Process: Benefits Reporting
Jump to Procedure Steps (below)
Jump to Related Policies/Job Aids (below)
Employees are allowed to enroll in multiple Tax Sheltered Annuity plans. All TSA plans combined have an annual IRS maximum that cannot be exceeded. Savings limit processes will run nightly to calculate and store employee savings contributions and limits. Benefits limit tables are configured in PeopleSoft so that an employee doesn't go over the annual limit unless a 15 Year Catch Up or Over Age 50 Catch Up have been enabled.
After the payroll process is run, if the IRC limits are reached, PeopleSoft enforces the maximum IRS amounts across multiple plans by capping the employee's savings deductions. The remaining dollar amount available is defaulted to the highest ranking plan type in numerical order. For example, the 403(b) Ameriprise/RiverSource plan is set up as plan type '4U' while the 403(b) Dreyfus plan is set up as '4V.' If an employee who was enrolled in both of these plans was close to reaching their yearly limit for contributions, PeopleSoft would take whatever amount was remaining up to that limit and automatically apply it to the '4U' plan (the highest ranking in this example).
The Benefits Administrator will need to contact an employee prior to him or her reaching the IRS maximum to determine which TSA deduction to allow through payroll, and which deduction to manually override for the remainder of the calendar year based on the employee's wishes. The 403(b) Maximums Report will be generated monthly after the last payroll confirmation and used to identify and then counsel these employees. Information for this report will be pulled from pay sheets between January 1 and December 31 of a calendar year for employees enrolled in more than one TSA plan with combined annual contributions of $10,000 or more. After the Benefits Administrator has reached out to the employee, there will then be a "hand off" to Institution payroll to enter a manual deduction override on the paysheet accordingly to allow the employee to reach the limit for the specified plan.
- Employee's enrollment in TSA plans
- 403(b) Maximums Report
Exceptions (including first-year considerations):Calendar Year To Date contributions for all employees will be converted into PeopleSoft from the Legacy database.
- Click UW Benefits Reports link
- Click 403B Maximums Report link
- Click either the Find Existing Value tab or the Add a New value tab to enter a run control ID
- If finding an existing value, click the Search button then select a run control to use
- If adding a new value, enter the run control ID and click the Add button
6. Enter the Dept ID for which the report should run or use the magnifying glass icon to look up a department ID or leave blank to run for all department IDs
7. Click the Run button
8. Be sure that the Select button is checked for the report
9. Click the OK button
10.When returned to the Request Parameters page, click the Process Monitor link to view the status of the process
11. Click the Refresh button until the Run Status says Success and the Distribution Status says Posted
12. Click the Details link to access the report in pdf format
13. Click the View Log/Trace link
14. Click the PDF link to view the report
15. The employee listed on the example report below should be counseled by a Benefits Administrator because she has reached $10,000 in her combined yearly savings contributions