415 Comp...

[Guest KTF]

I am reading that when you calculate an employer contribution for a profit sharing plan with a 401K feature you reduce the total comp each participant earns by the amount deferred to come up with the 415 comp. That 415 limits are based on "taxable" income and when someone defers compensation his "taxable" income for the year is reduced by the amount deferred. ie. EE makes $30K, defers $5K, max ER cont = 25% of $25K or $6,250. Right so far?

Lets make the plan a SH plan with a 3% SHNEC.... 3% of 415 comp? or using the above example, 3% of $25K or $750? or is the SH contribution 3% of total comp?

Finally, plan is TH... 3% TH minimum of total comp or 3% of $30K or $900

[QDROphile]

See section 415©(3)(D) and the revised 415©(1). What you are reading is obsolete.

[Guest KTF]

Found it in the Pension Answer Book. My source was just a little too old.

[Blinky the 3-eyed Fish]

KTF is old too. It's a good think Blinky is still relevant because I don't want to morph to Spongebob.

[Guest KTF]

I may need to kill Kermit - too much pork - heart attack - or maybe Ms. Piggy simply flattenned him. One last "Hi Ho" for ol'time sakes.