Pension Plan Contribution Group Annual Limit in NetSuite 2025.2
Pension Plan Contribution limits updated in NetSuite 2025.2, affecting employee management and compliance.
Starting in NetSuite 2025.2, updates have been made to the annual limits for pension plan contributions, impacting various employee plans such as 401(k), 403(b), and others. This enhancement is crucial for organizations looking to ensure compliance with IRS regulations regarding employee retirement contributions.
Key Contribution Limits for 2025.2
The following are the newly established annual contribution limits for different pension plans:
- 401(k), 408(k)(6), 403(b): $11,250 (for ages 60-63)
- 408(p) Employee Elective Deferrals: $16,500
- 408(p) Employee Elective Deferrals Catch-Up (Regular): $3,500
- 457(b) Plan Catch-Up (Ages 60-63): $11,250
These limits provide a necessary framework for both HR professionals and payroll administrators to manage employee contributions effectively. Understanding these caps helps prevent over-contribution penalties and ensures that employees can maximize their retirement savings within the legal framework.
Best Practices for Implementation
To make the most out of these updates, consider the following best practices:
- Regularly Review Contributions: Regular audits of employee contributions can help ensure compliance.
- Communicate Changes to Employees: Keep your team informed about these limits, especially if they are near the cap.
- Integrate with Payroll Processes: Ensure that the payroll system is updated to reflect these new limits to avoid any compliance issues.
Who This Affects
This change primarily impacts the following roles and modules within NetSuite:
- Administrators: Responsible for configuring and updating employee contributions.
- HR Personnel: Need to communicate changes to employees effectively.
- Payroll Managers: Must ensure that payroll reflects the new limits accordingly.
Key Takeaways
- New pension plan contribution limits were introduced in NetSuite 2025.2.
- Specific annual limits apply to various retirement plans.
- Implement regular audits and communication strategies to ensure compliance.
- Affects HR, payroll, and administration roles directly.
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