Annual True Up %

[Guest Liosis]

Quick question. I realize that the annual compensation limit is $245,000 and that the deferral limit is $16,500 plus another $5,500 for those who are catchup eligible. For an annual true up, an employee making $300,000 would who maxed out at $16,500 would have the match calculated on the basis of 16500/245000=6.73%. This 6.73% would be used with the matching formula to calculate the proper match.

My question is if this person was catchup eligible and deferred the total $22,000, would their match be calculated on the basis of 22000/245000=8.98% or is $16,500 a limit for calculating matches much like the $245,000 limit??

Thanks

[Sully]

The plan document should specify whether catch-up contributions will be taken into account in applying any matching contributions under the Plan.

In my experience most plans do match catch-up contributions.

[Guest Liosis]

Got it...Thanks.