415 limit for limitation year that is not a calendar year

[Guest terryh123]

New 415© dollar limit for 2005 is $42,000. Is this for limitation years beginning or ending in 2005? In other words, if I have a limitation year ending September 30, 2005, is the limit the new $42,000, or the 2004 limit of $41,000? Reg. 1.415-6(a)(2) seems to say it would be $42,000, but that is an old regulation issued before EGTRRA and I can't find anything definitive anywhere else. Thanks for assistance.

[Belgarath]

Ending in 2005. You have the correct reference. EGTRRA 611 specified that the statutory increase under EGTRRA (to 40,000) wasn't effective until limitation years BEGINNING on or after 1/1/02, but the COLAs are effective for limitation years ending in the calendar year, as you mention.

[Guest terryh123]

Thanks for the confirmation.