BenefitsLink logo
EmployeeBenefitsJobs logo
  
  

Search the News


Featured Jobs
Senior Pension Consultant
Pension Administrator
Health Care Planning Manager
Retirement Plan Administrator II
Account Manager
Managing Director, Retirement Services
401(k) Daily Valuation Administrator
Defined Benefit Analyst/Administrator
Search all jobs
 
Get the BenefitsLink app for iPhone and iPad LinkedIn
Twitter
Facebook

Jump to content


Photo

Short first plan year?


  • Please log in to reply
2 replies to this topic

#1 jaemmons

jaemmons

    Registered User

  • Registered
  • 486 posts

Posted 07 April 2004 - 02:03 PM

Initial plan year is from 10/1/2003 thru 12/31/2003. I know that the 415 $limit is not prorated, but what about 401(a)(17) and the integration level? From my understanding, the compensation limit under 401(a)(17) and the maximum permitted disparity level are to be prorated if contributions within a dc plan are based on compensation during this short period.

Is this a correct assessment?

thanks for any replies :huh:

#2 Bob K

Bob K

    Registered User

  • Registered
  • 53 posts

Posted 07 April 2004 - 02:24 PM

I agree.

See 1.401(l)-2(d)(5) for pro-ration of the Integration Level, and
1.401(a)(17)-1(b)(3)(iii) for pro-ration of the compensation limit

Hope this helps.

Bob

#3 Blinky the 3-eyed Fish

Blinky the 3-eyed Fish

    Registered User

  • Sitewide Moderator
  • 3,364 posts

Posted 07 April 2004 - 02:42 PM

Be careful on the 415 issue. If the limitation year is short, then the 415 DC $ limit must be prorated. Often times DC plan documents will define the limitation year as the plan year.
"What's in the big salad?"
"Big lettuce, big carrots, tomatoes like volleyballs."