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Check the document language. It may limit comp from which deferrals are allowed to the comp limit. While there is no requirement to do so, it certainly may have been drafted that way.

The example is an employee who elected a dollar amount per pay period. The attorney is saying that an employee who elects a percentage of pay must be stopped at the comp limit as suggested by My 2 Cents. In this case, the document does not limit deferrals beyond the 402(g) limit. If the plan does not limit the compensation to the 401(a)(17) limit for contributions, then the plan should not have stopped until the participants reached the deferral 402(g) limit. So frustrating. And I think the auditors are being silly as well.

Also, depending on age, may have to worry about being able to pay minimum required distributions if liquidity becomes an issue.

Coming at this from a payroll perspective -- I think they have constructive receipt issues on ALL the income and the IRS will not like this at all. This was not a mistake, but a changing of their minds. From a payroll/tax perspective this is a nightmare approach especially if they have also already submitted FIT/FUTA/FICA and then any state consequences. I don't see where this could be claimed a mistake in fact. They got the compensation, they have deferral elections in place, etc. This is just bad planning on their parts. If I were their accountant, while it does cost them more in taxes, I would suggest leaving it as is and doing a cash investment of the net pay back to the company. Because might just cost more than they had in taxes to fix all the different parts (of which the 401k deductions are just one). Add in loan repayments and it gets even nastier.

I think so too, but it's not my opinion that matters.

last posted a few years ago, but here it is again 130 songs to identify by a picture. simply type in the number of the song in the yellow boxes. the song list is included on the spreadsheet the first song is already solved as an example. christmas puzzles- 130 to solve .xls

I found this article to be interesting, funny and stimulating. Excerpt: Can you believe it? Plug “How to be Steve Jobs” or “Steve Jobs lessons” into Google and you’ll get page after page of tips. One trite homily after another explains how to imitate a few of the great dictator’s tics. Switch “Jobs” for “Ballmer” and you get almost nothing. I bet you could learn a lot from Steve Ballmer. More than you can learn from Jobs. You’re not like Jobs. Jobs was a handsome lustrous-haired genius who hooked up with another genius in his early 20s and formed a new, globally important (and immediately successful) company. Ballmer was a funny looking bald non-genius who joined a growing company as employee 30. Which is more like you? Jobs’ net worth at death was $10 billion. Ballmer today is worth $22 billion. He worked at Microsoft for 34 years solid. He wasn’t fired once. If you’re a non genius who hasn’t formed a globally important company in your early 20s — and especially if you’re funny looking — you’ll probably learn more from Ballmer than you can from Jobs.