EGTRRA - contributions to K-plans

[JanetM]

I am a plan administrator for my company. We have three 401(k) plans that do not cover union.

I am interested in how the EGTRRA provisions will be adopted by other plans who have ee's over 50. We have a couple of choices:

1. Limit the deferral % under the plan so participants can use the catch up provisions. Plan says limit is 12% - participants do the 12% allowed and use the catch up provisions to max their

contributions.

2. Do not limit the deferrals - let people defer up to 75% of their pay. This cenario would only allow those who defer over the 401(g) to use the catch up.

I would like some feedback on what you think the majority of plans will do.