FAQ 2216: Catchup Eligible but showing excess deferrals vs. catchup

Problem: These folks are catchup eligible, but ASC is showing their catchup as excess deferrals - Why?

Solution: The issue here is their coding on the NAME screen, they are set to HPI=YES, change this to NO and they will be showing up as catchup vs. excess deferral.  Effective for PYB 1/1/2026 the HPI will be required and the catchup will need to be setup for being converted to Roth if the person is truly an HPI.