Another Catch-up Qt (fiscal year)

[Guest mab]

John Doe, age 55, made no prior contributions (elective or catch-up) in 05'. The plan is a fiscal year ending May 31, 2006.

Assuming no plan document restrictions and no testing violations, I have two questions.

#1 Can John

1) Defer 14,000 on 12/31/05;

2) Make a catch up of 4,000 on 12/31/05;

3) Defer 15,000 on 5/31/06; and

4) Make a catch up of 5,000 on 5/31/06

#2

If #1 is yes, does this mean his 415 limit for 5/31/06 is $44 k plus the $9 k in allowable catch-ups.

Tx. for any feedback.

Mark.

[Mike Preston]

Assuming compensation is at least $44,000, the answers are yes to both questions.

[Mike Preston]

PS. I'm assuming that 5/31 is the limitation year.

[Guest mab]

Assuming compensation is at least $44,000, the answers are yes to both questions.

Tx. for the feedback. Yes, total comp is well above $44k and 5/31 is the limitation year.