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2002 compensation limit for grandfathered governmental plan participan


Guest scm
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I am looking for the 2002 compensation limit for grandfathered governmental plan participants. Earlier this year, a consultant indicated it would be $290,000...is this correct??

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The official limit is not out yet, although I understand that some consultants have calculated what the new limit will be, based on the cost of living figures. If anyone has a definitive guide, let me know. I try to keep updated information on my site, but it's very late in coming this year.

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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  • 3 months later...
Guest smueller

Help....if governmental plan amended in 1992, retro to 1989 to include 401(a)(17) comp limits per TRA 86, then OBRA 93 came along and said king's x, govt plan are DEEMED to satisfy 401(a)(17) until 12/31/95, does anyone know if that mean an employee in the plan in 1993 can continue to use his/her salary, e.g. $300000 for all ensuing years too as an "eligible participant" or because you amended to put in the 40l(a)(17) limits in 92 you are stuck with post-95 years having to reduce his comp to the $235,000 limit (as indexed in later years)...Any help is appreciated, very confusing language in 93 plus 401a17 regs on the grandfathering in the above scenario

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I would say that if you amended in 1992, you are stuck with the lower limits. (It is the terms of the plan in 1993 that govern.) Obviously, there is an unfairness in penalizing those who made the most efforts to comply, but Congress basically decided to live with that to resolve some state constitutional issues.

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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Guest smueller

..thanks Carol....tricky subject; few places to get feedback on strange world of govt plans, but greatly appreciate your message board....Have place repeated calls to the IRS help number to no avail..seems the 401(a)(17) issue for govt'l back then from I can gather was a political football....again, my appreciation....

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Yeah, that's the main reason I wrote the Governmental Plans Answer Book--one too many times of someone asking me what to read to learn about this area, and my not being able to come up with any suggestions. ;)

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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Thanks for the endorsement!

By the way, I never call the IRS help line, for reasons of which you are fast becoming aware. If you have any sort of technical issue, and know which Code section you're interested in, there is an online IRS Code and subject directory that will tell you which actual human at the IRS deals with your Code section. Even in those instances in which the directory is out of date, the chances are excellent that calling that number will put you in touch with the current human in charge of that Code section. (This is also a nonpaid political endorsement--I have no connection with them. :) )

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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