Guest JD Colville Posted April 7, 2000 Share Posted April 7, 2000 It has recently been brought to my attention that under certain very limited circumstances, an individual in a SEP can be allocated more than $24,000 (15% X $160,000) for 1999. Supposedly, this is because individual compensation for purposes of the 15% limitation is not subject to the 401(a)(17) limit of $160,000. My question is whether for purposes of the integrated allocation of the contribution, the individual's compensation is limited to $160,000 or whether the individual's total compensation can be used? If so, the allocation would be further skewed to the HC. I am assuming that all of the other requirements relating to SEP's, including the deduction limit of 15% of total compensation are met. Thanks in advance for any guidance. Link to comment Share on other sites More sharing options...
Bill Berke Posted April 18, 2000 Share Posted April 18, 2000 I strongly believe that the comp limit ($170,000 - 2000) applies. Read Code sections 408(k)(3)©, 408(K)(7)(B)and 401(a)(17). The rather convoluted way I got to this opinion. Link to comment Share on other sites More sharing options...
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