ADP Test and Catch Up Contributions

[Alex Daisy]

2007 ADP Test Fails. One HCE is due a refund of $500. This HCE contributed $12,000 to the Plan in 2007.

Since the HCE did not use the $5,000 catch up in 2007, can I reduce the ADP refund and therefore no ADP refund is owed?

Or since the EE deferrals were not greater than $15,500, I cannot use the unused catch up amount to offeset the ADP refund.

Any help is greatly appreciated.....ALEX

[WDIK]

Catch-up contributions can apply because of any legal limit, plan imposed limit, or ADP restriction.