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402g Limits: Case Study

Decent Essays

Team,

On January 2nd Amundi Pioneer will be turning on the compliance flag in relation to 402G Limits. You ask “ What does this mean?” ,and “how does it affect us?”

Let’s start with that’s a 402G limits? . This is the total contribution amount allowed in a year per the IRS.

Next , you ask why this affects us, as we don’t report contributions. No , you are correct we still don’t; however our system will start monitoring contributions sent in to ensure the Plan and Partic do not go over the allowable limits. .

How does this affect the Plan/Partic? If our system see’s that they have over contributed the transaction will kick , this is a safety net to ensure they are not over contributing. This will result in a callout letting them know

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