FAQ 21: ADP--Catchup amounts added back into the test incorrectly


The catchup amounts are being added back into the test. For example, a participant contributed a total of $14,000 for the plan year. After running the 402(g) report, he had $12,000 for testing purposes. Yet, when I ran the ADP test, his contributions showed as $13,000 with $1,000 as a catch-up contribution.

I need to know how to correct this.


You cleared out the "ADP Test" catchup field on the Catchup Limits (LIMITCAT) screen, but did not restore the deferral contribution to the original amount on the Contributions (CONTRIB) screen. This would then cause the next ADP run to be off.

It is important, if you make manual changes, to both clear the ADP Test catchup field *and* restore the Contributions screen to the original amount. You should not have to make any manual changes, as the ADP run will "self-correct" every time it runs to get back to the original contribution amounts and start over. You can also use the "Backup or Restore Contributions" option on the Compliance menu to make restoring the contributions easier.

Lastly, download and review the catchup documentation from the ASC website.