FAQ 609: ADP--Roth and deferral on failing plan. How to code so that Roth is returned first?


How do I code the ADP Corrections Setup screen to return failing ADP monies on the Roth source before taking money from the deferral source?


On the Corrections Setup screen, be sure that you have the Source Reduction Method coded as "Sequential". In the Source Reduction Order box, the returns will be made to the sources in the order in which they appear. Put the Roth source first, followed by the deferrals and the system will return HCE excesses in that order.