FAQ 334: 402g--Off-calendar catchup amounts not correct


The off calendar catchup amounts for 402g are not showing correctly, even though I input the dollar amounts per the off calendar catchup documentation.


Sample participant with off calendar catchup:

1) He showed 14487.49 entered as 1/1/04 to 9/30/04 deferrals. Per client spreadsheet, changed to 15,371.91 in ASC.
2) Missing the prior year catchup amount for 9/30/04 of 2371.91. Entered this in the "Prior Plan Year Catchup" field.
3) Per spreadsheet, input 628.09 as deferrals from 10/1/04 to 12/31/04 on the Catchup Off Year (CATOFFYR) screen.
4) Ran 402g calendar year from 1/1/04 to 12/31/04, checking box to save results.
5) System calculated the 628.09 catchup for calendar year 2004.
6) Ran 402g for 1/1/05 to 9/30/05, checking to save results.
7) System calculated a catchup of 2989.25.
8) The ADP test then showed the catchup total for the plan year of 3617.34, net contrib 14000.

The root of the problem is that the prior year catchup amount of 9/30/04 of 2371.91 was not input in the record before the calcs began.