Catch up AFTER close of 2006 Plan Year?

[Lori H]

3 HCE's in a 401K missed out on the 2006 catch up for pye 12/31/06 due to their payroll dept not coding for it. I am thinking it is too late for them to go back and deposit these amounts, am I right?

Do they have any other options? IRA funding? Or would their AGI's be too high? (They all earn in excess of $150,000)

Thanks

[TLGeer]

Take the money now and adjust for 2006 tax withholding and on 2006 W-2. The TPA should know how to do this.

[austin3515]

That's a little sketchy, but it SHOULD be okay. I'd probably do the same thing in the same situation, assuming all the appropriate elections were signed by the employee, so that it was CLEARLY a payroll glitch.

[Lori H]

so reissue w-2's? and austin what exactly to you mean by elections?

thanks.

[JanetM]

You would have to reissue W-2.