A participant has contributed $500.00 monthly since January. This participant calls in April wanting to increase the annual deferral limit. To calculate what the participant can defer, take the annual limit minus the year to date deferral ($500 x 4 if a state participant = $2000, $500 x 3 for most other employers = $1500). The balance is divided by the number of pay periods left in the calendar year. This is the maximum monthly deferral for the participant going forward.