How can SARSEP limits be changed in Congress to allow contributions to be calculated like 401(k) plans (for both EE & ER contributions)?

[Guest mhalvor]

Is changing the IRC 402(h) exclusion limit of 25% (that is still based on "includable" compensation) all that is needed to allow contributions of 25% (or greater) to SARSEP plans? If I wanted to ask my Congressman to make this fix, exactly what should I propose to bring this type of plan to parity with a 401(k)?

[Gary Lesser]

All that would be needed to fix this oversight would be to eliminate Code Section 402(h)(2), and redisignate subparagraph 3 to subparagraph 2.

Hopefully this same Congressperson would not vote for the LSA/RSA/ERSA changes that would eliminate SARSEPs (and several other plan types) from existance under the "one-plan-fits-all" rule.