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Annual Additions


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Governmental 457(b) plans are not subject to 415©(1)(A) defined contribution limitation. Governmental 401(a) plans are subject to the limitation. For the governmental 401(a) limits test do you include deferrals made to the employer's 457(b) plan? I don't think so. Can you please provide a site.

Thanks!!

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No, you do not. Treas. Reg. § 1.415©-1(a)(2)(i) specifies which contributions to defined contribution plan are treated as "annual additions" subject to 415©. They include only contributions to:

(A) A plan described in section 401(a) which includes a trust which is exempt from tax under section 501(a);
(B) An annuity plan described in section 403(a); or
© A simplified employee pension described in section 408(k).

Thus, a contribution to a 457(b) plan is not part of annual additions for purposes of section 415©.

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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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