pmacduff Posted November 3, 2015 Posted November 3, 2015 client uses prior year testing. one owner over age 50. testing will pass for 2015 based on lower group average from 2014. no one is contributing in the lower group for 2015. So....can the owner contribute the catchup of $6,000 next year (2016) with the lower group average at 0% for 2015? I know this should be easy but believe I am overthinking it....
BG5150 Posted November 3, 2015 Posted November 3, 2015 Should be ok. test will fail, but all refunds will be reclassified as catchup. Any Top Heavy implications? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
pmacduff Posted November 3, 2015 Author Posted November 3, 2015 ok - my thinking was in line. good call on TH. There are NHCEs with balances that have just stopped contributing. Plan hasn't been TH but I will keep close watch going forward.
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