$14,000 deferral limit

[eilano]

I have a client with a 6/30/05 fiscal year-end. An HCE deferred the maximum $14,000 from 1/1/05 through 6/30/05. The ADP/ACP testing failed for the 6/30/05 PYE and this HCE had to take a $14,000 refund and received this prior to 9/15/05. Is there any way for this person to make any additional deferrals from his paycheck in the 2005 calendar year?

[Guest JimChad]

The 2004 ERISA Outline page 11.274 Paragraph 1.f.

An example is given where $1,200 is distributed to correct an ADP failure. This $1,200 is not added back to what can be deferred in the last 6 months of the year under 402(g) or 401(a)(30).

Sorry my news isn't better. I'm sure this is not what the client wants to hear.