How to Set Up Direct Deposit Deductions for Retirement Plans
Many retirement plans and Health Savings Accounts (HSAs) allow contributions to be sent via ACH or direct deposit. With Beyond, you can set up individual contributions so they are deposited directly into an employee’s HSA or retirement account.
Questions to Ask Your Plan Administrator First
Before setting things up, confirm the following with your plan administrator:
- Do they accept ACH deposits directly from a third-party payroll provider?
- What are the routing and account numbers for each employee’s HSA or retirement contributions?
- Is there any specific memo field information they require?
- If the provider is Fidelity, Vanguard, or Charles Schwab, what are their ACH account numbers?
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Why is this important?
For Fidelity, Vanguard, and Charles Schwab, each employee has a unique ACH deposit account number that is different from their retirement plan account number. Without it, Beyond cannot send funds into the employee’s account.
Getting Started
Deductions are set up inside the employee profile.
- From your dashboard, click the employee’s photo or initials to open their profile.
- Alternatively, go to the Workers menu > Employees list, then select the employee’s name.
- In the employee profile, go to Job > Deductions.
Adding Employee Deductions
- Click the (+) Add button to create a new deduction. (Scroll down if there are existing deductions.)
- Choose 401(k) from the deduction list, then click Add. The deduction will now appear in the employee’s list.
- Expand the deduction using the disclosure arrow to update the details.
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ACH Information:
- Set status to Active.
- Enter the routing and account numbers provided by your plan administrator.
- By default, the memo field auto-fills with the employee’s name, but you can replace it if your plan administrator requires a different format.
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Reminder: For Fidelity, Vanguard, and Charles Schwab, you must use the ACH account number (not the standard retirement plan number).
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Include Benefit Amount?
- Toggle this option on if the employer match should be included in the ACH deposit.
- Leave it off if the employer match will be sent separately.
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Beyond automatically saves your changes, so once the deduction is set up, you can simply close the profile and continue with other tasks.
Special Note on Retirement Account Deductions
If your 401(k) provider requires debiting your company bank account for the total contribution amount, you should still set up the 401(k) deduction in Beyond for each employee—but do not activate ACH. In this case, the provider will collect funds directly from your bank, not from Beyond.
Need Help?
If you still have any questions, please don’t hesitate to reach out. Our team will be happy to provide answers and assist you in any way we can.