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November 12, 2021

Excess deferral

Your Guide



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







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

    • 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

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IRA Rules