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Employer Contributions |
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Employer Contributions |
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Employer Contributions
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Employer Contributions |
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Employer Contributions |
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This tab will allow for configuring various employer contributions options, including matching employee pre-tax contributions.
| Hint: | If the employer uses a Safe Harbor matching option, this can be quickly configured by clicking on the "Instant Safe-Harbor Config" button found on the top-right of the tab. |
The specific prompts are discussed below.
Percent of Employee Contribution
Percent of Salary
Enter the percent the employer contributes, regardless of the employee contributions.
End of year profit sharing (percent of salary)
Enter the end of year profit sharing the employer contributes to the retirement plan.
Percent Matching
Enter the percent matching with a maximum percent of salary and/or a maximum dollar per month. (Leave the maximum dollar per month at zero (0%) to have no maximum.)
If the employer contributes a certain percent of salary when the employee contributes a certain value, enter the values here.
Conditional Matching
For example, if the employer will contribute 4% and the employee contributes 3%, enter 3% for the Minimum employee contribution and 4% for the Employer contribution.
Tiered Method
TRAK allows for various methods of tiered matching:
Salary
Employer contribution is dependent upon the salary of the client. For example, the employer may contribute 5% of the first $20,000, and 2.5% until the income is $50,000.
Age
Use this method when the employer contributions are dependant upon the employee's age.
YOS
Use this method when the employer contributions are dependant upon the employee's years of service with the employer.
Tiered Matching
Use this method when the employer contributions are dependant upon the employee's contribution, but is tiered.
| For Example: | If an employer contributes 100% of the first 1%, and 50% of the next 5%, the grid should appear similar to what is shown in the table below (also similar to the screen shot above). |
Starting Employer Contribution |
Ending Employer Contribution |
Percent |
0% |
1% |
100% |
1% |
6% |
50% |
Use this method when the employer matches a percentage of the employee's contribution in tiers (e.g. 50% of the first 3% and 25% of the next 3%) and the tiers are tied to the number of years of service the employee has.
| Note: | If a matching system other than those listed is encountered, and you would like to see it added to TRAK, send an e-mail to support@TBInc.com. Include information about the method, and the TRAK program team will prioritize efforts to incorporate it into a future build. (Obviously, there are no guarantees, as the complexity of the matching will determine the reality of inclusion and time tables for such.) |
The aggregate limit (expressed as a percent of paycheck) provides the ability to cap the employers total contribution to the pre-tax plan. This includes all contributions made by the employer except (pre-tax matching, Roth matching, percent of salary, etc.) end of year profit sharing.