Short plan year

Hi, 

One of the plan that is terminating the term date is 08/31/2022 and participants have already max out for the entire year (20,000) since the term date is 08/31/2022 and the part's have contributed for the entire year will this be excess contribution from the participants end? 

Thanks

If you are referring to employee deferrals, that is a tax payer calendar year limit, not a plan limit.   There is no proration to the 402(g) limit or need for a correction.

1 hour ago, D Lewis said:

If you are referring to employee deferrals, that is a tax payer calendar year limit, not a plan limit.   There is no proration to the 402(g) limit or need for a correction.

Yes, its the employee deferrals.  so does it mean the participants can still contribute? 

It depends on how the resolution to terminate the plan was written.

If the resolution states the plan is terminated on 8/31/2022 and no new contributions will be allowed after that date, then deferrals can continue until that date.

If it doesn't spell it out, then the Plan Administrator will need to make an interpretation.

Check how the resolution was written.