Plan Imposed Limits

[Guest revier]

If you have a partnership and the partners exceed the plan imposed limit, are the deferrals which excee the plan limit left in for ADP testing like you would for HCE who exceed the 402(g) limits?

Any thoughts would be appreciated.

[SoCalActuary]

You may be able to amend to a higher limit in the plan, since this is an increase in benefits.

However, to operate within the terms of the plan document, you must refuse to accept excess deposits or move it to the next plan year. If you can move to the next year, and it was made after year end, then you don't count it for any purposes for the prior year. If you cannot do either, then you must refund, IMO.

[Guest Pensions in Paradise]

Does the plan allow for catchup contributions? If so, then deferrals above the plan imposed limit would be characterized as catchup contributions.