Managing Employee 401(k) Elections and Contribution Limits

You can manage employee deferral elections, monitor contributions, and ensure compliance with IRS limits through your Employer portal. This helps prevent over-contributions and keeps payroll in sync with the plan.

Who This Applies To

This article applies to employers and plan administrators managing 401(k) plans.

Adding Employees and Tracking Participation

Adding Employees

• Upon hiring, add all W-2 employees* into your plan.
• Log in to your employer dashboard.
• From the left navigation menu, select Employees.
• Select Add Employee > Manually Add.
  • Enter the following information:
    • First and last name
    • Email address
    • Social Security number
    • Phone number (optional)
    • Date of birth
    • Mailing address
    • Termination date (if applicable)

• • Select Next: Plan & Employment and enter:
    • Hire date
    • Recent hours and compensation
    • Payroll schedule
    • Role & relationships
• Select Save & Add Employee
• Once eligible, employees receive a Welcome Email guiding them to set up their account.
  • If Your Plan Allows Immediate Eligibility
    • Employees will receive the enrollment invitation as soon as their information is entered into our system—there is no waiting period.
  • If Your Plan Has a Delayed Eligibility Rule
    • For plans that include service requirements (such as 1 year of employment and/or 1,000 hours worked), we send the enrollment invitation 30 days before the employee's eligibility date.
    • However, there is an exception to the 30-day notification policy: If your plan requires 1,000 hours of service and the employee hasn’t  met that requirement by the 30-day notice point, we’ll delay their invitation until the requirement is met.

*New employees are automatically added to plans with 360-degree payroll integration.

Employee Deferral Elections

• Employees choose pre-tax or Roth (after-tax) contributions.
• They can specify a percentage or flat dollar amount for each payroll period.
• Employee elections can be updated at any time, but update timing depends on payroll integration:
  • 360-degree payroll integration: Elections update automatically through the daily API.
  • Non-integrated plans: Updates must be manually entered in the payroll system, typically effective the next payroll cycle.

Reviewing Employee Deferral Elections

To review employee elections:

1. Log in to your account.
2. On the employer dashboard, locate 401(k) Reports.
3. Click Employee 401(k) Elections.
4. Download in CSV, PDF, or XLSX format.
5. Forward to your payroll provider or manually update payroll records.

Tip: While email notifications are sent for new or updated elections, it’s best to review elections regularly before each payroll submission.

Managing Contribution Limits

The IRS sets annual limits for employee 401(k) contributions, including catch-up contributions for eligible participants:

* Combined Contribution Limit includes employee deferrals, employer matching/profit-sharing, and safe harbor contributions (IRS Section 415).
** SECURE Act 2.0 (2025) increases the catch-up limit for ages 60-63 to the greater of $10,000 or 150% of the standard catch-up amount.

Tips for Managing Contribution Limits

1. Verify payroll system caps: Check with your payroll provider to ensure appropriate deferral limits are set for each employee.
2. Review contributions per payroll:
   • Download the Contribution Detail Report and Contribution Analysis Report from the Reports menu.
   • Compare year-to-date contributions against IRS limits.
3. Monitor the last payroll of the year:
   • The Check Date determines the plan year for contributions.
   • Example:

• Tip: Confirm the payroll period aligns with the correct plan year to avoid contribution errors on the W-2.

Troubleshooting Tips

• Elections not reflected in payroll? Check if your plan uses 360-degree integration or manual updates are required.
• Over-contributions detected? Review the Contribution Detail Report and adjust future payroll deferrals.
• Incorrect plan year for contributions? Submit a request to Ubiquity to adjust the plan year.

Need Help?

If you have questions about employee contributions or limits, contact us.