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Full Version: How can SARSEP limits be changed in Congress to allow contributions to be calculated like 401(k) plans (for both EE & ER contributions)?

BenefitsLink Message Boards > Retirement Plans > SEP, SARSEP and SIMPLE Plans

mhalvor

Jan 17 2005, 03:47 PM

Is changing the IRC 402(h) exclusion limit of 25% (that is still based on "includable" compensation) all that is needed to allow contributions of 25% (or greater) to SARSEP plans? If I wanted to ask my Congressman to make this fix, exactly what should I propose to bring this type of plan to parity with a 401(k)?

Gary Lesser

Jan 17 2005, 05:33 PM

All that would be needed to fix this oversight would be to eliminate Code Section 402(h)(2), and redisignate subparagraph 3 to subparagraph 2.

Hopefully this same Congressperson would not vote for the LSA/RSA/ERSA changes that would eliminate SARSEPs (and several other plan types) from existance under the "one-plan-fits-all" rule.

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