Once you have run the data scrub and verified the results you are ready to calculate contributions. Click the “Allocation” section of the Compliance Tasks block to expand it.
Allocation Overrides – here you can set any overrides required. If you are uploading employer contributions rather than having the software calculate them you want to select “Yes” on the Overrides box on this screen for that contribution type. For example, if you are uploading nonelective contribution amounts, select “Yes” to “Nonelective allocation manual override”. Note that if you do check yes to override a contribution, and have a formula entered, you will have the option
on the line below to request a True-up report; this will list any differences between the amounts uploaded and the amounts calculated by the formula. Please note that the override to indicate that you are uploading Match is the second line on the list “Match allocation manual override”.
Q.S. Tip: The first item in the “Overrides” box in the “Allocation Task” is “Override Employee Contributions to be matched (requires entry of matched contributions in census)”. A “Yes” here means that the plan has different eligibility and/or entry dates for deferrals and Match - so deferrals used to calculate Match will be different for participants with Match entry dates during the plan year. You will need an additional column on the census when you answer Yes to this question. |
Matching Allocations - here you can enter formulas for any Match and/or Safe Harbor Match contributions that you want the software to calculate. The options available here are largely determined by how the plan is coded in Plan Set Up so if an option that you want to select is unavailable, you should review Plan Specifications.
Top Heavy Allocation - here you can review/select various options for top heavy minimum contributions; you can adjust the parameters here, e.g. to indicate that the design of the plan automatically meets top heavy allocation requirements. Please note that the software will automatically calculate top heavy minimums if the plan is coded as top heavy unless the plan design does not require them. Note too that if there are participants coded as self-employed in the Employee Class column on the census, you will need to set “Override Top Heavy minimum allocation percent” to Yes and enter the percentage you want the allocation to use – typically 3.00.
Q.S. Tip: Top-Heavy status may be changed on the “Top Heavy Test Task” screen. If the plan is top heavy and this is the first year in the ftwilliam.com system the override is not needed. In the box “Top Heavy as of Determination Date” set the first question to Yes. No other data is needed. |
Nonelective Allocation - here you can enter formulas for any nonelective contributions that you want the software to calculate. The options available here are largely determined by how the plan specifications are coded, so if an option that you want to select is unavailable, you should review plan specifications. The allocation type for all but a New Comparability formula may be either “Specified”, where you would enter a percent, “Dollar”, where you would enter a dollar amount, or “Maximize” where you can select either one individual or all HCEs to maximize to the 415 limit or a specific dollar amount. Note that the allocation type has to be “Specified” for a New Comparability allocation. Once your parameters are set you click the Run icon. You will then be able to open and review the following reports, depending on the parameters: allocation, true-up report and/or calculation of an integrated formula.
