austin3515 Posted March 4, 2011 Posted March 4, 2011 Owner defers $21,000, and ADP test fails. About $400 of the 16,500 included in the test is reclassed as catch-ups before I try anything fancy. Can I still make it all the way to 54,500? I can allocate my employer contributions of $33,500 first Then, I can do my 401k of 15,500 which puts me at the 49,000. So now, I have a full $5,500 of catch-up contributions ($21,000 less $15,500 included in the "sub-415" contributions), which means that only $15,500 is in the ADP test, which would be passing. Does everyone agree with that? Austin Powers, CPA, QPA, ERPA
12AX7 Posted March 4, 2011 Posted March 4, 2011 Austin, there is a similar thread here: http://benefitslink.com/boards/index.php?showtopic=48098
PensionPro Posted March 5, 2011 Posted March 5, 2011 Yes you can allocate $33,500 PS. Your catchup contributions are 1) 402(g) catchup of $4,500 2) ADP catchup of $400 3) 415 catchup of $600 PensionPro, CPC, TGPC
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now