To set up a 401(k) plan in Drake Accounting, you will need to create a deduction (employee portion) and complete the Employer 401(k) Match Options under Employees > Options if applicable.

To set up the employee portion, create the deduction using the following steps:

1. Select the Employees menu, Deductions & Benefits, then select the Deductions tab.

2. Select the new button ().

3. Enter the Deduction Name and Account.

4. Enter the applicable Amount, Ceiling, and State.

5. In the Based On section, select Dollars/Cents or Percent from the droplist.

6. Select the applicable options in the Deduct After Tax, Exempt From, Apply To, W-2 Box 12, and WH. Code sections.

7. Select Save.

To set up the employer matching portion, follow the steps below:

1. Select the Employees menu, then select Options.

2. Enter the applicable percentages and limits in the Employer 401(k) Match Options section. See Drake Accounting - 401(k) Matching for more information.