404 Limits under EGTRA

[stephen]

It is my understanding that for plan years beginning after 12/31/01 we will include participant deferrals as compensation. Does this also include cafeteria deferrals?

e.g for 404:

Compensation: 40,000

Deferrals: 2,000

Cafeteria: 3,000

Old way Comp: 35,000

New way Comp: 40,000

[actuarysmith]

You've read it correctly.