Participant Contribution Changes
Participants do have the ability to change their retirement plan contribution % or amount in their online 401(k) accounts. As a plan sponsor, it’s your responsibility to implement these changes in your payroll system. ERISA Partners provides a few automation features that help you manage this process. The two primary features are automatically-generated reports and automatic email notifications.
This guide will help demonstrate how to use these features so you can stay on top of participant contribution changes.
When a participant makes a change to his or her contribution % or amount in their online retirement account, you will receive an automated email notification from firstname.lastname@example.org. This email contains a link that will take you directly to the plan sponsor login page.
Login to Your Plan Sponsor Account
Use your participant account credentials to log in.
Go to the Report Center
After logging in, click on the Report Center link in the main menu.
Reports Sent to Me, then Administrative Reports
Look under the “Reports Sent to Me” section of the Report Center screen to find the “Administrative Reports” report listing. The 401(k) Deferral Change Report is contained under that section.
Reading the Report
The 401(k) Deferral Change Report contains the participant’s new retirement plan election % or amount by source type. The 401(k) deferrals are pre-tax and Roth contributions are post-tax. You will want to update your payroll system to match the participant’s desired retirement % or amount so that is withheld from their pay each payroll cycle. This update should also flow through to the contribution file that is uploaded to our website each payroll cycle as well.