414(h) Pick-up

[DTH]

I have a 414(h) pick-up plan where the mandatory employee pick-up contributions are 3% of compensation and the employer contributions are 8% of compensation. The employer also has a 403(b) that only holds only employee contributions. If the employee is in the pick-up plan they can also elect to participate in the 403(b) plan.

How is the annual deferral limit determined? Do you count the 3% mandatory contribution plus the 403(b) employee contributions?

Thanks.

[Everett Moreland]

If your question is about the annual elective deferral limit for contributions to the 403(b) plan, the 3% 414(h)(2) contributions are not counted (do not reduct the limit).