Election to Defer "Max. % Permitted Under ADP Test"

[Christine Roberts]

How definite must a deferral election be? Partners have until 12/31 each year to make a deferral election w/respect to self-earned income, the amount of which won't be final in amount until after the end of the year; as ADP testing will be performed by the time the contribution must be funded (i.e., deadline for 1040) is there any reason the partner's annual deferral election can't be defined as "the maximum dollar amount permitted for an HCE under final ADP testing"?

What about a deferral election stated as a flat dollar amount equal to the annual 402(g) limit, or, "if lesser, the maximum permitted under ADP testing"?

Or is this just too "cute" an end-run around maintaining a safe-harbor plan?

[austin3515]

Have you been hacking into my network and reading my self employed deferral election form?

Don't forget my favorite one, "just enough 401(k) such that the plan WON'T be considered top-heavy"

But yes, formulas are 100% acceptable.