FAQ 342: Calculations--404 limit message after running valuation calculations

Problem: What is the maximum 404 percent for a profit sharing plan? We are getting the warning message after valuation calculations: "The plan exceeds 404 limit on total contributions."

Solution: The maximum 404 percent by law is 25%. Check your coding in the general specs on the Benefit Limits (BENLIMIT) screen. Make sure that the 404 section in the mid-left corner is coded appropriately with respect to 25.00, Groups Included and Hours Required. The system generates that 404 warning message based on this coding. It calculates the contributions in the plan and the total 404 eligible comp and stores it in the Plan Specs under View - Values - CONTRIB.