FAQ 67: ADP--Contribution amounts are too high for some employees


When I am running the ADP/ACP test, for some reason it is increasing my deferral figures for a few individuals. When I look at the grid I can see the correct numbers, but when I print out the test, the numbers have increased. Can you please tell me what is causing this problem and how to fix it?


These are HCEs, and the additional amounts are excess 402(g) amounts. The ADP test will take the amount on the Contributions screen, then add back excess 402(g) amounts for HCEs. These excess 402(g) amounts may have been calculated when the 402(g) test was run and then the Contributions screen was edited back to the original, full amount but the 402(g) screen was not cleared out.
Go to the employees' 402(g) Limits (LIMIT402) screen, and check for excess 402(g) amounts. If they are there and shouldn't be any longer, clear them out and re-run the ADP test.