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Code Section 414(h)


jlf
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There is no specific maximum on pick-ups, as such. Rather, the limit is that if the pickup contribution is made to a defined benefit plan, the benefit generated by that plan cannot exceed the 415(B) maximum. If the pickup contribution is made to a defined contribution plan, the pickup contribution plus all other annual additions cannot exceed the 415© maximum.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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Carol,

With reference to a DC govermmental plan: For 2002, the total of employer and employee contributions may not exceed the lesser of $40,000 or 100% of salary. If the employer contributes $25,000 the employee may contribute up to $15,000, with the $15,000 being a "pick-up" under 414(h)(2). Are you in agreement with me?

Best wishes,

Joel L. Frank

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