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415 Limits & Catchup Contributions

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2 replies to this topic

#1 MBCarey


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Posted 13 July 2007 - 08:15 AM

I think I've been in this business too long. Can someone tell me if for the 415 Annual Limit do you include the catch-up deferral amount? i.e. 15,500 + 5,000 + 29,500 = a total of 50,000 to max a owner out in 2007. I thought that was the case, but someone told me differently, in that the $45,000 for 2007 includes the catchup for age 50 & over.

#2 John Feldt ERPA CPC QPA


    John Feldt, CPC, QPA

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Posted 13 July 2007 - 08:27 AM

Catchups do not count against the 415 limit.

Young folks are limited to $45,000 for 2007.

Old folks (50 and up) can get $50,000 for 2007 if $5,000 of that is a catchup deferral.

#3 TLGeer


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Posted 14 July 2007 - 07:36 PM

414(v)(3): (3) Treatment of contributions
In the case of any contribution to a plan under paragraph (1) -
(A) such contribution shall not, with respect to the year in
which the contribution is made -
(i) be subject to any otherwise applicable limitation
contained in section
sections 401(a)(30), 402(h), 403(b), 408,
415(c), and 457(b)(2) (determined without regard to section
457(b)(3)), or
(ii) be taken into account in applying such limitations to
other contributions or benefits under such plan or any other
such plan, and
(B) except as provided in paragraph (4), such plan shall not
be treated as failing to meet the requirements of section
section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k),
410(b), or 416 by reason of the making of (or the right to make)
such contribution.
Thomas L. Geer, J.D., LL.M.
Benefit Plan Solutions

Phone & Fax: (888) 315-6720