FAQ 571: Reports--Catchup contributions not included on Investment Summary report


When I run the 401k valuation report, it includes catchup contributions on the deposit summary (CONTRIB screen) but it does not show a catchup contribution on the investment summary (Account VALUES screen). All of the compliance tests ran seemed to work and classified $5,000 of 402g as catchup.


If the VALUES screen deferrals have been reduced by the catchup amounts, that would indicate that you have a coding error in the Source 1 specifications and the deferral amount was changed when valuation calculations were run. This symptom is a result of a coding problem that causes the VALUES to reset when running the Valuation Calcs. Check the Source 1 specs: The coding should be "Force Contrib = Yes" and "Contribution Fund Split - 99 Input"(not 1-directly to fund 1).
That coding will prevent the VALUES numbers from resetting to equal the CONTRIB numbers when calcs are run - which was the original design of the programming. However, some of our recordkeeping users with single fund plans discovered that they could "copy" the deferrals from the CONTRIB to the VALUES screen during the calcs if they changed the "99-Input" to "1-Directly for Fund 1". Using this trick, they could avoid having to input contributions as transactions or importing the contributions to both the VALUES and CONTRIB screens. This works okay unless there are catchup amounts. During compliance testing, catchup amounts are reduced in the CONTRIB screen, but not the VALUES screen. This is required to reflect the full deferral amounts in the employee account balance, but the reduced amounts in subsequent compliance tests.
If you use this coding trick to copy the input Deferrals from the CONTRIB screen to the VALUES screen, that's fine. However, after you do this, you should change the coding to Force-Yes and 99-Input before you start catchups and run val calcs again.