Increased Deduction Limits

[FJR]

The increased deduction limits, effective in 2002 for Profit Sharing plans equal to 25% of compensation, when does it apply for to an off calender plan year. If the plan year is 10-01-01 through 9-30-2002, What deduction limit do you use?

Is there anything out there that spells out what other changes under EGTRRA applies to plans that are not calender year?

Thanks.

[stephen]

The 25% limit applies for plan years beginning after 12/31/01. Therefore, for your example it will apply for the plan year beginning 10/1/02.

There have been lots of great links via BenefitsLink regarding EGTRRA. I would suggest you start your search there.