Definition
Salary deferral contributions, contributions are limited to the lesser of the IRC § 402(g) limit or 100% of compensation. Salary deferral contributions in excess of this limit are excess deferral contributions.
The 402(g) limits are as follows:
| Year | IRC § 402(g) Limit | Catch-up contribution limit |
| 2015 | $18,000 | $6,000 |
| 2016 | $18,000 | $6,000 |
| 2017 | $18,000 | $6,000 |
| 2018 | $18,500 | $6,000 |
| 2019 | $19,000 | $6,000 |
| 2020 | $19,500 | $6,500 |
|
2021 |
$19,500 |
$6,500 |
|
2022 |
$20,500 |
$6,500 |
| Potential COLA increase in increments of $500 for tax years beginning 2006 for salary deferrals and catch-up contributions. | ||
Referring Cite
IRC § 402(g)(3)
Additional Helpful Information
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- Excess deferral contributions should be corrected by April 15 following the close of the taxable year. The distribution should include any income allocable to the excess
- Failure to remove the excess deferral by the deadline could result in double-taxation to the employee
