emmetttrudy Posted April 10, 2012 Posted April 10, 2012 Can an owner (max comp) receive a $49,000 profit sharing contribution and then make a $5,500 deferral, classified as catch-up? Or is a deferral not classified as catch-up until you hit the $17,000 limit.
PensionPro Posted April 10, 2012 Posted April 10, 2012 Yes 49k ps plus 5500 catchup. One poster was having trouble with the IRS regarding this concept but we have not heard the outcome. http://benefitslink.com/boards/index.php?showtopic=51102 PensionPro, CPC, TGPC
BG5150 Posted April 11, 2012 Posted April 11, 2012 Catch-ups can occur when a participant hits a limit--ADP test, 402(g), 415, plan-imposed. Doesn't matter which one. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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