We are dealing with exactly this issue. We are needing the pre-tax group to account for the annual employer match limit similar to the annual employee contribution limit. Additionally, there should be a way to limit either by the comp limit or the annual employer match $ limit or both. In our situation, we limit by the annual match limit and not the compensation limit because highly compensated employees can exceed the limit early in the year. And not all plans do a true-up. I see a solution for a third liability but not tied to the contribution, not good because now you have to monitor as to when the EE contribution limit is reached. Otherwise, you are remitting match funds without contribution funds which is a true-up. Not acceptable.

Did you ever get a resolution for this? I just had a case closed on me where viewpoint had zero answer for this exact situation.

the IRS publishes a maximum 401k compensation limit each year.  so the limit is the max 401k compensation ($280,000 for 2019) multiplied by our maximum match %.

it doesn't matter to me which liability is limited, they just both need to be limited together so they don't surpass the limit.

For instance, let's say Company A's max 401k match is 6%.  for 2019, the maximum amount they could match is $16,800 (6% of $280,000).

I admit I am not an IT expert, but it seems like it should work just like the 401k limit group works.  We have 2 401k deducts that have a limit applied so the total amount for both deducts combined doesn't surpass the IRS employee max deduct for the year.

What determines your matching limit? (i.e. employee compensation or other)

What rules do you use to cap your liabilities - is one limited fully before the other or both limited proportionally?

An example with limits would be helpful

Did you have this customized?