Deferrals in excess of plan document limit -- include in ADP? Are the

[R. Butler]

We have a 401(k) plan that caps deferrals at 15% of comp. Several participants exceeded the 15% limit raising several issues:

1. I know that 402(g) excesses are included in ADP test for HCE's, but not NHCE's. Does the same rule apply to employees exceeding the plan cap?

2. Are the deferrals in excess of the cap considered annual additions? If the deferrals are annual additions, several of the participants deferring in excess of 15% hit 415 limits prior to receiving an employer profit sharing contribution.

Thanks in advance for any guidance.

[R. Butler]

Just wanted to refresh this post

[Bob R]

There is no answer to this issue. Since you are generally using self-correction, I think the excess is not in the ADP test or 415 limits. My reasoning is that under self-correction the theory is to undo the transaction as though it never happened. But, that's just my opinion and I'm sure others may disagree.