Can catch-up contributions allow Tttal annual additions greater than 100% of compensation.?

[Richard Anderson]

This has not come up at our firm before. I think I know the answer, but would like to hear from others.

Someone with a low salary deferred about 96% of salary. After allocation of match and profit sharing, the total annual addition will exceed 100% of compensation. Can the excess above 100% be reclassified as catch-up. The excess is a total of about $75.

Thanks.

[himt4]

I asked a simlar question back in March. I'll try to paste the link here to that thread.

http://benefitslink.com/boards/index.php?showtopic=28235