Catch-ups & off calendar yr plans - again

[Guest RGlaser]

Looking at examples 5 and 6 of the proposed catch-up regulations.....in theory it's relatively straightforward to calculate the additional catch-up contributions that can be made between plan year end and 12/31. However, in reality, who is going to have the ADP testing completed quickly enough after plan year end (10/31 in these examples) to know what the amount is that will be recharacterized for the HCEs, and thus, what the additional catch-up amounts should be limited to?

In these cases, are plan sponsors going to not allow any further catch up contributions by HCEs for the period between plan year end and 12/31, or are they (more likely, in my opinion) going to let them continue at whatever rate they were contributing prior to plan year end? What happens if a person over-contributes catch-ups? There doesn't seem to be "excess catch-ups" defined anywhere and what is to be done with them.

I haven't seen any concerns about this, and am puzzled. Any thoughts? Thanks.

[Guest mkelly]

Hi,

did you check Sal's book ....11.211 3.c "What happens if the catch up limit is exceeded?"