Guest CAROLINE Posted March 12, 2002 Posted March 12, 2002 HOW DOES THE DEDUCTION LIMIT FOR AGGREGATE PLANS (EMPLOYER MAINTAINS BOTH DC AND DB PLANS)APPLY WHEN NOT ALL PARTICIPANTS IN THE DC PLAN PARTICIPATE IN THE DB PLAN? PLS HELP. THANKS.
Blinky the 3-eyed Fish Posted March 12, 2002 Posted March 12, 2002 The deduction limit for a DB and DC plan (404(a)(7)) applies when there is one common participant amongst the plans. The phrase, "One and your done," would be the motto to live by. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
Guest CAROLINE Posted March 13, 2002 Posted March 13, 2002 THANKS SO MUCH FOR YOUR REPLY. I HAD THOUGHT SO BECAUSE THE LANGUAGE OF THE APPLICABLE REGULATION INDICATES THAT AS LONG AS THERE IS ONE COMMON PARTICIPANT, THE AGGREGATE DEDUCTION LIMIT RULE APPLIES. I ASSUME THAT THE COMPENSATION TAKEN INTO ACCOUNT COMPRISES OF ALL PARTICPANTS (COMMON PARTICIPANTS AS WELL AS THOSE WHO PARTICIPATE IN ONE PLAN AND NOT THE OTHER)?
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