mp cont required before 401k cont?

[Guest billy bong]

A co. has both a 401k and mp plan. if a participant has reached their 415 max through 401k deferrals, should the mp cont take precedence since it is a required cont and subject to minimum funding standards i.e. return enough 401k deferral to allow for the mp cont. even if the doc instructs to return employer cont. first?

[MWeddell]

The IRS position in the 1995 examination guidelines for 415 is that the terms of the plan must preclude employer discretion. The plan(s) should state how a 415 failure is corrected and you have to follow what's in the plan document.