How do I set up a Roth 401(k) deduction?

You can create a Roth 401(k) plan deduction by modifying and enabling the existing Sage 50 401(k) formula.

Step 1: Set up the benefit

1. Click Maintain, Payroll, Payroll Settings.
2. Click Benefits, Summary of Benefits.
3. Click the Add Another Benefit button.
4. Select Retirement Plan. Click OK.
5. Select the Roth 401(k) option.
6. In the Who contributes money to this plan? field, click the down arrow to select the contributors for this plan. Click Next.
7. Select the contribution method for your company. In the Contribution Formula field, enter the appropriate amounts. Click Next.
8. The Roth 401(k) Tax Settings - Employee Contribution screen will define whether the deduction is pre-tax or taxable. Make any needed changes. Click Next.
9. The Roth 401(k) Tax Settings - Company Contribution screen will define whether the deduction is pre-tax or taxable. Make any needed changes. Click Next.
10. Verify that the G/L Account Numbers listed are correct for the Employee contribution. Click Next.
11. Verify that the G/L Account Numbers listed are correct for the Company contribution. Click Next.
12. Make sure everything is correct on the Summary of Benefits page. Click Finish to complete the Roth 401(k) setup in the Wizard.

Step 2: Configure the employee percentage

1. Go to Maintain Employees / Sales Reps.
2. Click the Withholding Info tab.
3. In the list, scroll down to the Roth 401(k) line.
4. Enter a Percentage and specify if the employee is eligible for Catch Up contributions.
5. Save the record and Close the window.