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Which Applies First: Compensation or Deferral Limits?
American Retirement Association [ARA] 
Mar. 17, 2026 "More than half of respondents ... (57%) allow employees to defer up to the full deferral limit (Section 402(g) limit and catch-up, if eligible), regardless of the compensation cap while 38% limit deferrals when the compensation cap has been reached, and five percent have another approach.... Only 12% said that not applying the compensation limit affected testing, and those stated that they had to make adjustments/refunds to HCEs after the fact[.]" MORE >> |
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