How to Manage Deduction Codes in ADP Workforce Now When Leaving ADP's 401(k) Recordkeeping Services

If you are transitioning from ADP's 401(k) Recordkeeping services to another 401(k) Recordkeeper, the deduction codes that were used while ADP was recordkeeping your 401(k) will be removed by ADP. In order to ensure continuation of your employees deductions, you will need to ask your ADP payroll rep to add new Deduction codes specific to the deduction sources your plan is already utilizing.

 

Please ask your ADP rep to label the codes "401k" or "Roth 401k" and include whether or not this code is for percent updates or flat dollar updates. For example, it is common to use the following code labels:

  • "401k %"
  • "401k $"
  • "Roth 401k %"
  • "Roth 401k $"

 

Once the codes are added you'll need to manually assign them to employees in ADP. Please reach out to your recordkeeper to get a list of enrollment amounts in order to do this. 

 


For any further assistance, please submit a help desk ticket here and we will get back to you as soon as possible.