Fiscal Year 401k / Deferral Limits

[cheersmate]

Can a participant in a fiscal year 401k plan have deferrals within a fiscal year that exceed the 402g limit?

Plan Year: 7/1/2014 - 6/30/2015

Plan permits special election for bonus pay

Participant is age 50+

Compensation exceeds $100k + bonus

Deferrals 7/1-12/31/2014 $6,000

Proposed Deferrals + Catch-Up to be deposited 1/1-6/30/2015 PYE $24,000

Can a participant have permitted deferrals + catch-up totaling $30,000 for the Plan Year 7/1/2014 - 6/30/2015 given the above fact pattern?

Assuming, yes, it is understood this participant would NOT be able to defer any further for the remainder of calendar 2015.Would restart Deferrals in 2016...

Thank you

[Lou S.]

The 402(g) limit is on a calendar year.

The 402(g) limit can be exceeded in a non-calendar fiscal year assuming the participant does not exceed the 402(g) limit (including any catch-up if applicable) in either calendar year and does not exceed the 415 limit (or any other plan imposed limit on deferrals) in the limitation year which is often but not always the plan year.

That said, this can be problematic for plans subject to ADP testing when HCEs do this.

edit - that's a long winded way of saying - very likely no problem in your example.

[cheersmate]

Thank you Lou. Just wanted confirmation to ensure I wasnt have a senior moment... This particular case is having a good year and isnt certain what the next will hold for them. It is a SH plan therefore not subject to ADP testing.