Search the Community
Showing results for tags '404a3'.
Found 1 result
-
Hola Amigos! I was wondering if anyone could point me to some guidance regarding the calculations of the deduction limit prescribed by IRC §404(a)(3) for an Employer that terminated their Plan mid-year, specifically if you use comp for the entire year, or just the portion of the year that the Plan was active. I am inclined to say that it is for the entire year because I know that the deduction for DC plans is 25% of the aggregate comp of the eligible participants and that comp for deduction purposes is all comp paid or accrued to the participants during the Employer's taxable year. I was hoping that someone would know where this scenario is described in the EOB or some other text. Thanks in advance!!
