FAQ 594: Budget--Cross-tested sole prop or partnership - Any way to maximize at 404 using the budget routine?

Problem: I have a cross-tested sole prop plan. Is there any way to code it to calculate the 404 only?

Solution: There is no automatic option to calculate to the 404 limit when it is a new comp/cross-tested plan. My only recommendation would be to use a "guess and check" method in the budget routine where you enter a contribution, run the calculation, see how close you are, extrapolate, enter another contribution, run the calculation, etc. The 401(a)(4) calculations, in combination with the income calculations in a sole prop or partnership in the budget, are already complex and we did not want to add a third calculation that is interdependent for a relatively unusual scenario. In most cross-tested plans, the owners are not looking to get to their 404 limit, but are looking to put in as little contribution as possible.