Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Retirement Plan Consultant

Carpenter Morse Group

Carpenter Morse Group logo

Retirement Plan Legal Specialist

(Remote / West Harrison NY)

Pentegra logo

Distribution \ Loan Clerk

Retirement, LLC
(Remote / Oklahoma City OK)

Retirement, LLC logo

Retirement Plan Relationship Manager

ERISA Services, Inc.

ERISA Services, Inc. logo


Central Pension Fund of the IUOE
(Washington DC)

Central Pension Fund of the IUOE logo

Defined Benefit Calculation Specialist/Actuary

The Angell Pension Group, Inc.
(Remote / East Providence RI)

The Angell Pension Group, Inc. logo

Executive Compensation Lawyer

Trucker Huss, A Professional Corporation
(Remote / San Francisco CA)

Trucker Huss, A Professional Corporation logo

Enrolled Actuary

Prime Pensions, Inc.

Prime Pensions, Inc. logo

Quality Assurance Manager

Bates & Company
(Remote / Winter Park FL)

Bates & Company logo

Associate General Counsel

Central Pension Fund of the IUOE
(Washington DC)

Central Pension Fund of the IUOE logo

Client Service Manager

United 401(k) Plans, Inc.

United 401(k) Plans, Inc. logo

401(k) Distribution Manager

Nova 401(k) Associates

Nova 401(k) Associates logo

Retirement Plan Administrator

Nicholas Pension Consultants
(Remote / Corona CA / Rancho Cordova CA)

Nicholas Pension Consultants logo

Relationship Manager

Compass Retirement Consulting Group, Inc.
(Remote / NH)

Compass Retirement Consulting Group, Inc. logo

Jr Retirement Plan Administrator/ Administrative Assistant

Hochheiser Deutsch & Co, Inc.
(Melville NY)

Hochheiser Deutsch & Co, Inc. logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

<< Previous news item   |   Next news item >>

Fixing Excess Contribution in Form 5500-EZ Plan
BenefitsLink Message BoardsLink to more items from this source
May 30, 2021

"401(k) plan, husband and wife only participants - both over age 50, both deferred $25,500 (not $26,000) for 2020; ER contribution is $75,000 (as deducted on 1120S return) plan document (McKay Hochman) says allocate PS pro rata; husband's W-2 wages more than wife's W-2 wages, due to SH health added to his comp When I allocate $75K pro rata between the two of them, then add his regular deferrals of $19,500, he is over $57,000 annual addition limit. Can $500 of his deferrals be recharacterized as catch-up (making his total catch-up $6,500) to reduce the excess? Then reduce his PS allocation by enough to get him down to $57,000 + $6,500 catchup? The wife's original PS contribution plus deferrals, plus the excess from spouse, will still be under the 415 limit. Or do you skip the part where $500 of his deferrals are recharacterized, which makes his excess $500 higher and the give all the excess to her? There is room to do that, also. Which is the preferred or prescribed method? Thanks."

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2023, Inc.