We are an Independent Special District of the State of Florida (Fire Department). We are members of the Florida Retirement System, which is a 401(a). We need to code the deduction for this retirement plan correctly. There is no option for a 401(a) in Acumatica currently. How do we add it? This is affecting an over 50 employee with his catchup contributions.
Any help would be greatly appreciated.
Sincerely,
Denise McCaughan
A 401(a) is a retirement savings plan that an employer sponsors, and that allows for contributions from both the employer and the employee:
- Availability: Some public sector employers offer 401(a) plans.
- Contributions: 401(a) plans typically have employer contributions that are non-elective, meaning they are made regardless of whether the employee contributes. However, contributions can also be elective, or "match" contributions, where the employee must contribute first to receive the employer's contribution.
- Taxation: Earnings in a 401(a) plan are tax-deferred, meaning they are not taxed until they are withdrawn. Withdrawals are usually taxed at the employee's ordinary income tax rate, and may be subject to a 10% federal tax penalty.
- Rollover: Funds from a 401(a) plan can be rolled over into other plans, such as IRAs, 457 plans, or other 401(a) plans.
- Maximum contribution: In 2024, the maximum contribution limit for a 401(a) plan is $69,000.
