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This question seems to get asked once or twice a year. the problem is where exactly is the answer found.... Gave a talk a few years at one of the ASPPA conferences on 401(k) plans. As part of the presentation I posed the following question: Once an individual hits the compensation limit for the year he can no longer defer A. True. But it is not in the code or regs. B. False. But it is not in the code or regs. C. Since it is not in the code or regs it is up to the plan administrator how to handle. D. Your document will tell you what to do. The answer is found in the preamble to the final 415 regs: “As noted above, the final regulations provide that a plan cannot take into account compensation in excess of the section 401(a)(17) limit. In addition, the final regulations provide that elective deferrals can only be made from compensation as defined in section 415©(3). However, in applying these two rules, a plan is not required to determine a participant’s compensation on the basis of the earliest payments of compensation during a year.” so, as Bill pointed out, conceivably the document could limit things, which would be unusual. More commonly the match is allocated on a payroll basis, and once someone hits the deferral limit, since they stop deferring they stop receiving a match (unless the document calls for a true - up) I don't think I have ever seen a document that limited comp, I don't ever recall even seeing it on a checklist for a volume submitter.