In the event that you reach the annual contribution limit, the recordkeeper will update your DCP deferral amount to $0 or 0%. The updated deferral amount will transmit to the employer(s) and will be effective the beginning of the following month. Depending on timing and payroll frequency, it is possible that another payroll deferral could go through to the DCP after the limit is reached. In addition to regular monitoring, the recordkeeper will also work with all involved recordkeepers to perform an end of the year aggregate limit monitoring test. If necessary, the recordkeeper will return the contribution overages directly to the you as soon as administratively possible but no later than April 15 of the following year. The recordkeeper will also provide the W2 tax form for those earnings for the appropriate tax year.Â
