2007 limit

[doombuggy]

I am running some preliminary calculations for a client and I have been asked to run the max for the owner who is over 50. The plan is a 401(k) PSP with a non-elective safe harbor. Owner's comp for 2006 (they asked me to use the 2006 comp for the estimate) was over the limit, and still is, so that's ok. They indicated that he would maximize his deferrals (401(k) feature was added in 2007) to $20,500. My boss checks everything that goes out, and I have the owner's total of P/S, Deferrals & S/H at $50,000. He thinks it should be $50,500. Who's correct?

[Guest dbvail]

As I understand it, $50,000. That's Sec 415 $45,000 plus catch up. The 402(g) limit is a sub-set.

[Guest Judy S]

2007 max is $45,000 plus 2007 max catchup of $5,000 = $50,000 max for anyone at least 50 on 12/31/07.

[doombuggy]

Thanks, gang. I was feeling that the $50k ceiling was correct, but you don't want to tell the boss he's wrong......I think it's the $500 that's throwing him.