ADP Calculation

[Guest Beavis]

Unless contributions are actually in excess of the 402(g) limit, you can't take them out of the ADP testing.

[This message has been edited by Beavis (edited 12-07-98).]

[Guest sbavely]

When a NHCE appears to fail 402(g) because the plan year is off-calendar do you include the excess deferrals in your calculation or cap them like you would if the plan were a regular calendar year?

[Guest gself]

"appears to fail 402(g)" ?? Are you determining excess deferral amounts based on the taxable year? This determination should be made without regard to the plan year. In other words, salary deferrals for one plan year can be subject to the limitations of two different taxable years. I would agree...unless the deferral exceeds 402(g) in a taxable year, it can't be excluded from ADP for NHCEs.