I heard a rumor that for year 2000 .... an employee's $10,500 elective deferral does not have to be included in the "Section 415 annual addition limit of $30,000"... Thus, an employer can contribute $30,000 (not including the employee's $10,500 deferral). This would mean an annual addition of $45,000.

Has anyone heard of such a thing .... or is it simply nonsense ??

THANKS

I say nonsense.

Is this a trick question?

I agree -- total nonense. Wish it were true -- give me an IRC citing and I'll begin using it myself.

Nonsense. That would have been big news by now.

some fool is confused.
its the old issue of 'comp is not reduced by deferral when calculating an individuals 415 limit'

Maybe your rumor refered to the provision in the pension relief act that would have allowed employers not to include salary deferrals when calculating the maximum deduction limit?