Catch-up

[Guest Jerry]

I have a fiscal year plan ended 6/30/03 which fails ADP. The plan has a "Ketchup" provision and the failing HCE is catch-up eligible. Additionally, he had not used any of the available $2000.00 as of 6/30/03. Subsequently, the employee has surpassed the 2003 402(g) limit and used $81.00 worth of catch-up in the 6/30/04 plan year. My problem is that the 6/30/03 ADP test is not recognizing that he has already used $81.00 when it calculates the catch-up and refund. Has anyone else encountered this? Any solutions?

I have posted an incident with Relius.

[WDIK]

I don't "Relish" your situation.

[E as in ERISA]

If the $81.00 402(g) excess didn't occur until after 6/30/03, then why would it be taken into consideration for the 6/30/03 ADP testing? I realize that you may be performing the testing after the 402(g) excess has occurred. But you are testing as of 6/30/03. Any catch-ups used at that point would be taken into consideration for purposes of determining the 402(g) excesses occurring after that.

[Guest Jerry]

Thanks Katherine.

This is exactly the point that Relius ended up making to me. Even though we are finding out about the ADP test failure after the 402(g) failure occurred, the fact is that the ADP failure still came first. I end up with a reduced ADP refund for 6/30/03, however the employee has now overcontributed for 2003.

Six of one, half dozen of the other.

[doombuggy]

I had many problems with the catch-up program with Relius, as we had 7 last year, then got 8.0 in late December. We downloaded their fixes in mid-January, and it completely messed up the catch-ups. Relius told us to add a seperate source, then with 8, the deferral & catch-up sources needed to be combined. Not something we had teh time to do in January! While I got all my calender year plans straightened out, the off-calender plan I have with catch-ups is all messed up. I had to resort to manually doing the ADP test for teh 6/30/03 pye. Believe me, I spoke to Relius several times & they were no help.

[Guest DottleC2]

We went to 8.0 a while back and had combined sources - Catch-up contributions appear to be running fine We're running Ver 8.0 sp0 8.0 fixes executable version (support) May 2003.

Have yet to noodle what the implications of moving from 8.0 to ver 8.3 will be for some of our 'columnar' reports as some people here have requested a columnar report showing safe harbor in a separate column.

Bill

[Tom Poje]

Bill:

I separate the safe harbor from the other nonelective on an allocation report with the following under DETAILS:

Safe Harbor Contr=

StringVar AcctType;

AcctType:={RPTPLANACCT.TYPECD};

If (AcctType='B' or AcctType='A') and {RPTPLANACCT.ACCTID}>799 Then

{RPTEEACCT.CONTRAMT}

Else

0

and then do a sum total.

Same for the other nonelectives, except AcctId <800

of course, this means when number accounts all safe harbors start at 800