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Posted

I received an attorney-drafted newsletter that stated that the individual limitation for fiscal year plans ENDING in 2004 is $41,000 (not counting the catch-up). (example for a plan ending 2/29/04

Normally this limitation would be used for plans BEGINNING in 2004.

Does anyone have any more info?

Guest Bob K
Posted

Yes, that is correct.

See Regulation 1.415-6(a)(2).

The increase in limitation amounts applies to limitation years that END in the calendar year.

Hope this helps.

Bob

Guest sritts
Posted

The ERISA Outline book, chapter 5, explains the timing of applying the annual additions very well. :)

Guest PAL100759
Posted

You may also want to confirm what your limitation year is. The limitation year (per your plan document) may be calendar even if your plan year is not - one of our plans is set-up that way.

PAL

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