After Tax contribution limit

[Guest Mst Shake]

Blast from the past... This is regarding traditional After Tax (not ROTH).

I have a Ptp contributing $16,000 as After-tax. Does after tax fall under 415 limits or 402g limits? I believe it's 415 but I can't find anything to back me up. Can I get a second?

Thanks!

[Guest Mst Shake]

So is the question that elementary or that confusing?

[fiona1]

Employee contributions (after-tax voluntary or required / NOT ROTH) are considered annual additions in regards to the §415 limit.

The 402(g) limit, however, only applies to deferrals. This would include Roth, but would not include employee contributions.

[Bird]

Definitely 415 and not 402(g). Isn't there a 6% limit?

[Guest Sieve]

Annual additions used to include after-tax employee contributions equal to the lesser of (i) employee contributions exceeding 6 of compensation, or (ii) 1/2 of the employee contributions. That treatment ended with TRA '86, effective for years beginning after 12/31/1986. Perhaps that's the 6% you're remembering.

[BG5150]

And just remember: After Tax contributions get tested under ACP.

In one of my former jobs, the person handling a case tested the after-tax under ADP and the plan passed for 4 years. Then after she left the company, someone noticed the error. When he retested it for the 4 years, the test failed! Every year! Lots of QNEC and lots of angry calls & letters and lots of checks written to their lawyers (and some to cover the QNECs, everything got straightened out. And, to my knowledge, the case is still with that provider.

[Bird]

Annual additions used to include after-tax employee contributions equal to the lesser of (i) employee contributions exceeding 6 of compensation, or (ii) 1/2 of the employee contributions. That treatment ended with TRA '86, effective for years beginning after 12/31/1986. Perhaps that's the 6% you're remembering.

Yes, thanks. Sorry for the distraction.