comp limits and payroll issues

[K2retire]

ADP is telling one of our clients that deferrals must stop when a participant's comp reaches the 401 a 17 limit, even if the 402 g limit has not yet been reached. Although I have seen a few plan documents that had that limitation, this one does not. Any suggestions how to get ADP to correct this?

[Tom Poje]

send them a copy of the 415 regs and ask them to explain the last paragraph on page 47?

********my post number 5000******

[QDROphile]

Better yet, the IRS website now has the statement staight out on its website!!! See the latest IRS Employee Plans news for a link.

[Jim Chad]

Hey Tom, congratulations!!

[K2retire]

That's exactly what I needed. Thank you!

[QDROphile]

http://www.irs.gov/retirement/article/0,,id=255504,00.html

URL at IRS website.

Fire ADP, for any number of reasons.