401(k) limits

[Guest JoeK]

We seem to be getting conflicting information on how the annual compensation limit of $200,000 (401(a)(17),404(l),408(k)(3)©, and 408(k)(6)(D)(ii) ) should be used in a 401(k) plan.

The basic question is: If an employee has reached $200,000 in compensation, but has deferred less than $12,000 ( limit for employee deductions) of his/her salary, should the employee's deduction stop? Please list any references that may be helpful in your responses.

[david rigby]

Try this:

http://www.benefitslink.com/boards/index.php?showtopic=17117