California 402(g) Limit

[Guest susan w]

Can anyone confirm or let me know where to find the colas for California for the 402(g) limit, etc.? Has the cost of living adjustment been set for $11,000 in 2002, independent of EGTRRA? Thanks.

[Guest SPOT]

California has not amended their laws to conform with EGTRAA.

[Guest susan w]

The question is not whether California has voted to conform with EGTRRA, rather ... if EGTRRA were taken out of the picture completely, would the 402(g) limit be $11,000 solely because of cost of living adjustments?

[Mike Preston]

The answer is yes, it would have been $11,000 even if EGTRRA had not passed, but I'm not sure that those who deal with these things for the Great State of California care about technicalities like that. They seem to think that the limit should be $10,500 whether it would have stayed at $10,500 or gone up to $11,000 in the absence of EGTRRA. Hopefully, we will find that the California legislature passes conformance measures so this whole thing will become moot.

[MGB]

The 402(g) limit would be $11,000 in 2002 under pre-EGTRRA law. However, there is another thread here somewhere stating that personnel in the state, when questioned, are giving the $10,500 figure as being the correct amount. I don't think they understand that the automatic escalation is in the Code and would automatically produce the $11,000, rather than there needing to be an amendment to the law each year to increase it.