FAQ 499: Budget--Calculation will not give the maximum to group 1


I don't know what I'm doing wrong, but I just can't figure out what's happening here. This plan is a 401(k) with Safe Harbor Match. Both these sources are already in the system and check out fine. Now I want to run the Budget Routine to give the 2 employees in group 1 the 415 maximum and the minimum to everyone else. Every time I run it, it gives $0 profit sharing to group 1.

What's wrong with our setup?


There are a couple of things that are causing the behavior that you are seeing. First, the budget routine must have the "Reduce 415 in Calcs" field on the Benefit Limits (BENLIMIT) screen in the specs set to "Yes" in order to determine 415 limits and solve for the groups. Second, the two people in group 1 both have numbers input in the "Over-ride 415 Limit" field on the Limits screen in their employee records. Delete those amounts and the budget should produce the results you expect.