Plan Tax Information Subtask
Use the Plan Tax Information subtask to enter necessary tax information related to the administration of a 401(k) or the deferred compensation plan.
The information includes the deferred compensation plan start and end dates defining each significant year of the plan. The wage limit and deferral limit are defined by year.
Table Window
Use this table window to specify tax information for the selected deferred compensation plan. Click
to create a new tax information entry.
| Field | Description |
|---|---|
| Plan Start Date |
Enter, or click
|
| Plan End Date |
Enter, or click
|
| Wage Limit |
Enter the wage limit that applies to this plan year. The Internal Revenue Service (IRS) states wage limits by calendar years. If your plan year is different from the calendar year, you must use the limit based upon the start date of your plan year. For example, if your plan year starts on 07/01/01 and ends on 06/30/02, use the IRS 2001 calendar year limits in this table. The wage limit you enter on this screen equals the wage limit you enter on the Manage Federal Taxes screen. Costpoint uses the information on this subtask to link these limits to your Deferred Compensation Plan Year. |
| Deferral Limit |
Enter the maximum amount that can be deferred within the plan year. The deferral limit you enter on this screen equals the deferral limit you enter on the Manage Federal Taxes screen. Costpoint uses the information on subtask to link these limits to your Deferred Compensation Plan Year. The deferral limit entered on this subtask is for informational purposes only. |
| High Comp Basis |
Enter the IRS-specified Category 2 amount for determining highly compensated employees. If an employee exceeds this amount within the current plan year or the prior ("lookback") plan year, the employee is classified as Highly Compensated (without consideration to any other factors). |
to select, the plan start date for the deferred compensation plan. This start date and the end date represents the plan year, which may be different from the calendar year. You must enter one row for the first year of the existence of the plan. You can skip years in this table. The date format is MM/DD/YYYY.