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Creating a Roth deduction code

  • July 27, 2023
  • 2 replies
  • 105 views
J
Varsity III
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What is the best way to set up a Roth 401k deduction code? We currently have pre-tax deduction codes and will offer Roth beginning in 2024.

Right now I have the Roth deduction code set up as not affecting tax calculations, however I noticed that, if the Affects Tax Calculation box is checked, there is a Roth 401k Code Type on the US Tax Settings tab. Should I mark the Roth deduction as affecting tax calculation and select this Code Type?

Thank you.

 

 

Best answer by Kristen Hanson

Hi @jessicaASA 

You should select the Code Type for ROTH401k as the tax engine will know how to calculate it, and the reporting will be correct.

    2 replies

    K
    Acumatica Moderator
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    • Kristen Hanson
    • Acumatica Moderator
    • Answer
    • July 27, 2023

    Hi @jessicaASA 

    You should select the Code Type for ROTH401k as the tax engine will know how to calculate it, and the reporting will be correct.

    pbennett
    Chris Hackett
    S
    S
    Freshman II
    • slandreth70
    • Freshman II
    • July 28, 2023

    @jessicaASA - Also remeber to select the correct reporting type on the deduction Tab and if they are older the allow catch-up on the Employee Payroll settings - Tax Settings tab.

    shannon

    Chris Hackett
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