Catch-ups over 100% of pay

[austin3515]

Participant has comp of $10,000 and defers 100% (call it $9,235 after PR taxes). I believe we can give that employee a $2,000 profit sharing contribution if they are over the age of 50, because some of their deferrals will be reclassed as catch-ups, even though total exceeds 100% of pay. That's because 100% of pay is a 415 limit and contributions over the 415 limits are reclassed as cactch-ups.

Do I have it right?

[Jim Chad]

FWIW I think so.

[mphs77]

I think so as it seems to be like the example in the EOB, Chapter 11, Section XI, item .b.1)b)