404 Deduction Limit

[Guest JB2]

Is anyone aware of any changes to the calculation of the 404 deduction limit effective January 1, 1999.

Have talked with some individuals who seem to think it is higher than 15%, and that Sec 125 salary deferrals do not have to be deducted from compensation prior to calculation.

[Chester]

My understanding is that the SBJPA changed Section 415 only in terms of being able to include amounts contributed to cafeteria plans. However, Section 404 still requires that these amounts be excluded from compensation.