Recharacterization of Deferrals as Catch-up

[commishvp]

A 50+ year old participant defers $12,000 into the plan (limited because test would fail if greater amount deposited). His goal is to reach the total contribution of $46,000. The ADP test passes so none of the monies are reclassified as catch-up via the failed ADP test method. If he funds a $34,000 profit sharing contribution and "forces" the 415 failure, which would reclassify $4,000 as catch-up. Is this allowable? Is it a gray are?

Thanks!!

[JanetM]

If the 12K he has put in is the limit under the plan since additional will be refunded, he has triggered the 4K catch up.

His profit sharing could now be the 30K to get him to 46K.

Am assuming this is sole prop in small p/s plan since you mention p/s.