PensionPro Posted 11 hours ago Posted 11 hours ago Could we recharacterize catch-up contributions from the prior calendar year when there is unused catch up in the prior calendar year but not in the current calendar year? For example plan year is 7/1/2025 - 6/30/2026, Participant is catch-up eligible in 2025 and 2026. He deferred $23,500 for calendar year 2025 (so no catch-up in 2025 even though he was eligible), and he deferred $32,500 (used full catch-up limit) from 1/1/2026 to 6/30/2026. Plan fails ADP test for PYE 6/30/2026. Can $7,500 of the 2025 catch up be used to recharacterize excess contributions as catchup? Thank you! PensionPro, CPC, TGPC
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