401(k) limit

[Guest TTATE]

Our plan year for the 401(k) is not a calendar year. For testing purposes (ADP and Section 415) the fiscal year is obviously used. For the $12,000 limitation in 2003...would this apply to Calendar or Fiscal...or both?

[Archimage]

Only the calendar year.

[Tom Poje]

TTATE:

The easiest way to remember when the limit applies is to look at W-2 statements. The govt is going to look at these as filed with the 1040's and determine if an ee is over the $12,000 limit for the calendar year. Generally that should make it easier on payroll personal to track as well.

[Guest TTATE]

Thanks for the info.