415 Limits & Catchup Contributions

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MBCarey    0

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.

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TLGeer    0

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©, 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.

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