Catch Up Contributions When Compensation Is Low

[mming]

One of several participants in a 401(k) plan is age 50+ and has compensation of $28,000.  He is an HCE and defers $24,000.  The company will be making a profit sharing contribution - will he be able to be allocated $10,000 as a PS contribution ($28,000 comp + $6,000 catch up - $24,000 deferral), or will he be limited to only a $4,000 contribution due to the 100% of comp 415 limitation?  

[Bird]

Yes he can get $10,000 PS

[Mike Preston]

One must be careful, though, because a document can be written to preclude this favorable result.

[Buffys Redrum]

Speaking of favorable => $10,000 P/S with a $28,000 W-2 is 35.7% for an HCE - might seem discriminatory - but I'm assuming that wasn't the underlining question.

[CuseFan]

agree on $10k because catch-ups do not count toward any limit but their own. being an HCE is irrelevant to the 415 limit but, as Buffy notes, testing might bite you.