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I think you are confusing what I would call plan termination and plan closure. I explain to clients that the Termination Date is the date that typically benefits stop accruing. Its not uncommon for me to see the final payroll, or safe harbor deposit go in after the termination date. Particularly the employer contributions, which may still need calculations and testing. I use plan closure to explain that is what happens when all the balances are brought to zero. this would be after deposits are made, distributions are completed. I also find it helpful when explaining the Form 5500 requirements. Namely that it must continued to be filed until the plan balance is shown as zero. I realize that plan closure is not a technical term and the above usage does not quite reflect the regs, but for the average client, it seems to help them make sense of it all.

for pasting, it's that little switch in the upper left corner of the "Reply to this topic" window. Switch it up to paste and back down for the fancy word processing features.

Nor could someone begin deferrals during the year if they had already earned $245,000 that year. There needs to be a YTD match limit computation in the payroll system (updated when applicable) if that is where the match is being computed . That's what I discovered was missing here when I came on board to process payroll. We had to remove excess matches from the accounts of several employees. This is a subject that causes a lot of confusion and consternation among payroll people. I'm going to add the link to this discussion to my 401(a)(17) resource document - which also contains the infamous preamble.