"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."