Max defined cont plan

[Moe Howard]

Is there any kind of defined contribution plan in which a participant's annual addition (IRC 415) can be more than $46,000 for plan year 09/30/06 ?

I thought the max annual addition per individual participant (per plan) is $42000 + $4000 catchup = $46,000.

I recently had a guy who is both a notary pubic and termite inspector tell me that his employer's 401(k) plan allowed him to contribute slightly over $49,000 for plan year ended 09/30/06. Now I'm confused, I've always trusted his comments in the past. But now I have to believe that the TPA who calculated the contribution is off his rocker.

All I can do is to show him IRC 415 , as support for my belief that there is no way that his annual addition can be more than $46,000 (and that's only if he is over age 50).

[Appleby]

They may be talking 2006 plan year, $44,000 + catch-up of $5,000- max $49,000

[Tom Poje]

repeat the following:

The annual addition limit is an end of the plan year limit.

The annual addition limit is an end of the plan year limit.

The annual addition limit is an end of the plan year limit.

The annual addition limit is an end of the plan year limit.

The annual addition limit is an end of the plan year limit.

The annual addition limit is an end of the plan year limit.

The annual addition limit is an end of the plan year limit.

The annual addition limit is an end of the plan year limit.

see 1.415-6(a)(2)

....applies to limitation years that END during the calendar year.

usually limits are begining of the year (e.g. compensation)

Oh, did I mention that the annual addition limit is an end of the plan year limit?

[Belgarath]

I'd call your attention to the point that Tom makes regarding the limitation year. Be a little wary about assuming that the plan and limitation year are the same. While that is nearly always true, it isn't always. Section 415 limits are determined on a limitation year basis. You might consider modifying his mantra to "The annual addition limit is an end of limitation year limit."

I have a vision of Tom playing Puck, and leading the chorus in a Greek play, whispering this in your ear. Mixing Shakespeare and Greek tragedy (with qualified plans thrown in) seems bizarre enough for his considerable talents.

[Bird]

a guy who is both a notary pubic and termite inspector

If he combined his skills would he be a pubic inspector?

[Blinky the 3-eyed Fish]

I bet Moe2 would have known the answer to the question.