Order for Correction when failure of more than one limit

[Guest UKH]

What is the order for correction when a participant violates more than one limit?

(AA limit, 402(g)limit, 415 limit)

Also when violating the AA limit, does the money get adjusted for the ADP test or is it left in the test?

[Guest Mr. X]

I am assuming that AA stands for annual additions in your question. If that's the case, then the "AA" limit and the 415 limit are one and the same. Unless you are referring to 415(e), which I doubt.

When performing the ADP test, any deferrals returned due to excess annual additions are not taken included in the test. Because this differs slightly with regard to 402(g) limit violations (HCE's that violate this limit have their deferrals counted in the ADP test), I would surmise that the excess annual additions would be returned first. Check your plan document as it may have the ordering process.

[Guest UKH]

I apologize if I was not clear in my question. AA Limit does not refer to Annual Additions but what I am looking to find out is as follows:

What is the order for correction when a participant violates more than one limit?

(Adoption Agreement limit i.e. the salary deferral limit,402(g)limit and 415 limit)

Thank you.