RobN

<<<Any deferrals from 1/1/10 - 2/28/10? Or any 2010 recharaterization on 2/28/10 test? It wasn't mentioned so I'll assume no. 2010 Catchup is 18,492.66 - 16,500.00 = $1,992.66 Amount tested in 2/28/11 ADP is $16,500 + 6,058.20 = 22,558.20 Up to $5,500 additional can be recahraterized as 2011 catchup if test is failing. >>> There were no 1/1/10 through 2/28/10 Deferrals. I understand what you're saying, and that is where my question comes in: You're saying I get $1,992.66 for 2010 Catchup versus a potential $5,500 for 2010 Catchup. Assume the ADP Test won't pass unless there is $11,000 overall classified as Catchup for the PYE 2/28/11, I would think I'd get to use $5,500 as 2010 Catchup, as "ERISAtoolkit" seems to agree too.

One HCE with no Deferral for the Plan Year ending 2/28/10. Deferrals for 3/1/10 to 12/31/10 total $18,492.66 Deferrals for 1/1/11 to 2/28/11 are $6,058.20 What is maximum catch-up that is available for Plan Year ending 2/28/11 ADP Test? I'm thinking $5,500 for 2010 and $5,500 for 2011.

The clients goal is to put money in now, in 2011, while he has the cash and use the excess to go towards funding the 2012 contribution. Included in his scenario is deducting the contribution in 2012. I didn't think he could do it, but wanted to check here. However, thinking about it, in this particular case he would be creating a large enough PFB to offset the minimum required contribution for 2012, so that part of his goal is accomplished. He'll just have to deduct the entire thing for 2011, as it'll be well below the maximum permitted contribution for 2011. Thanks!

Client wants to deposit set amount now and use whatever amount that is in excess over the minimum required amount for 2011 (undetermined at this time) towards any 2012 minimum required contribution. Doable? Assume it fits within the deductible range permitted for 2011 & 2012.

What if the Employer sponsors 2 401(k) Plans, with no Key Employees in one of the Plans. They do not have to be aggregated for Top Heavy, so the "Non-Key Employee Plan" does not have to provide Top Heavy minimum contributions. Can you aggregate the Plans for ADP testing?

I set up a DB Plan in 2006 for an LLC involving 2 principals only, with one minimally benefiting only to satisfy participation requirements. I had the 3 involved entities (the LLC and each principal's corporation) adopt the Plan. I was just informed "their partnership was terminated in November". The one principal wants to maintain the Plan while the other doesn't. Am I stuck with keeping the minimally benefiting principal's benefit in the plan?

The $15,000 was deposited into an individual brokerage account that has been in existance with accumulated funds for years and had investment income for 2006.

Participant made $15,000 in 401(k) Deferrals during 2006 and it turns out he had a loss for the year. Is the correction simply refunding the $15,000 or should earnings on the $15,000 also be distributed?