FAQ 608: Matching--Source coding for match and Roth 401k deferrals


I need help setting up my pattern plan and understanding how to work with the matching formulas in more than one source. Can I only have one matching source? How do I match against Roth and traditional deferrals?


1. You can have more than one matching source. You should code the main matching for the plan in source 3. Sources 4 or greater allow for additional matching sources: you code the Contribution Allocation Method as "5-Calculate Match". If you use a source other than source 3 for a match, you will need to create a matching table. You can create a table under Access-Table Maintenance, then View-Defined Contribution-Matching Formulas or just select "Matching Formulas" on the left if using the Tree View.

2. Download the Roth 401k documentation from our website on how to code Roth deferrals. If you want to include an addtional source (such as Roth) in the match calculation, click on the "Show Match Fmla" button in the source 3 specs, then check the box next to the Roth source under "Sources Included in Match Calculation".

3. Also, under the Source 3 "Show Match Fmla", check the Roth source under "Sources Included in Match Calculation" to include Roth 401(k) deferrals in the match calculation for either the Source 3 Match or Source 4-20 Match.