off calendar year

[FJR]

I'm sure this has been asked, so sorry - Plan Year ending 10/31/04. What are the dollar limits:

414 limit = 40k or 41k?

Comp limit = 200k or 205K?

TWB = 87k or 87,900?

Thanks.

[stephen]

415 Limit: 41k (end of plan year limit)

Comp Limit: 200K (beginning of plan year)

Soc Sec TWB: 87K (also beginning of plan year)

[jaemmons]

Assuming your 10/31/2004 plan year is a full 12 month year ( and your limitation year is equal to your plan year), your limitations are those that are in effect at the beginning of the plan. Since your plan year ends before 12/31/2004, the 2003 limitations would be used.

I agree with the compensation and TWB limits in the prior post, but the 415 $ limit would be $40,000, since this is the 2003 $ limit for 415 purposes.

[Tom Poje]

see 1.415-5(a)(2) the limit is effective as of 1/1 of each calendar year and applies with respect to limitation years ending in that calendar year.

therefore, the limit in question is 41,000.

This is the one item that uses end of plan year, everything else is begining of plan year.

[Blinky the 3-eyed Fish]

That EGTRRA switch confused the issue a bit when for 2002 it was the limitation year beginning in 2002 for which the increased EGTRRA limits applied. That of course switched back to when the limitation year ends as Tom and Stephen indicated.