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  • 1.  401(k) Catch-Up Tax Rule

    Posted 01-11-2021 12:55
    Anyone else having the problem of Tax Rule 805006 (Section 401(k) Catch-up EE Deduction not reducing Federal or State withholding?  (It didn't on a couple of my clients, and I fear that Tax Rule was copied from Tax Rule 805122 - which is a Roth Plan - which doesn't reduce Fed & State Withholding.)  My first clue is that it says "EE" in the description, which is for a Roth Plan.  Hmmm...

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    Sue Bennett
    Jack of All Trades, Master of 1
    Bennett/Porter & Associates, Inc.
    Tigard OR
    503.620.3484
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  • 2.  RE: 401(k) Catch-Up Tax Rule

    Posted 01-11-2021 19:56
    That does seem to be the case unfortunately.  When I run the Tax Rule Inquiry using regular wages 800039 against 805006 and 805122 they reflect the same that no taxes are reduced.

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    Shari Eckersley
    ICS Support
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