CATCH UP CONTRIBUTION

[Guest JDK]

I HAVE A CLIENT WHO HAS CONTRIBUTED 12% AS A PROFIT SHARING AND 3% AS A SAFE HARBOR FOR THE HCES WHICH TOTAL $33,000.00 FOR EACH. THE HCES HAVE ALSO DEFERRED $16,000. AT THIS P0INT THEY ARE AT THE 415 MAX. IS IT POSSIBLE TO RECLASSIFY $5,000 OF THE DEFERRAL AS CATCH UP EVEN THOUGH ONLY $1000 IS CATCHUP ELIGIBLE?

[Mike Preston]

Must you shout?

[Bill Presson]

I HAVE A CLIENT WHO HAS CONTRIBUTED 12% AS A PROFIT SHARING AND 3% AS A SAFE HARBOR FOR THE HCES WHICH TOTAL $33,000.00 FOR EACH. THE HCES HAVE ALSO DEFERRED $16,000. AT THIS P0INT THEY ARE AT THE 415 MAX. IS IT POSSIBLE TO RECLASSIFY $5,000 OF THE DEFERRAL AS CATCH UP EVEN THOUGH ONLY $1000 IS CATCHUP ELIGIBLE?

Any amount of the deferral that exceeds the 415 limit can be reclassified as catch up (up to $5,000)

[Mike Preston]

Bill, according to what you and I listened to in DC, it may be more than that. There is also a potential document issue.