415 Limitations

[Guest Sieve]

A physician defers the maximum into a hospital 403(b) Plan, and then makes a contribution to his own separate PSP to the maximum Section 415 limitation (without considering the 403(b) plan deferral). Permissible?

[movedon]

He owns the business that sponsors the PSP? The 403(b) plan is treated as sponsored by him, not the hospital, for 415 purposes, so the two plans share one 415 limit.

[Guest Sieve]

Yes, he owns the business sponsoring the PSP.

I see that rule--that his 403(b) account and his co.'s DC plan are aggregated for 415 limit--in the new 415 regs. It appears from the old regs that that rule is unchanged and has always been the same, correct?

[movedon]

I believe so - IRC 415(k)(4).

[Guest Sieve]

IRC Section 415(k)(4) takes us back to 2000. I've now discovered that the old reg (Treas. Reg. Section 1.415-8(d)(2)) dates to 1980.

Thanks.

[TLGeer]

I am sure you know that the 402(g) limit is personal. However, the 457 limitation, including for elective deferrals, other than in come catchup situations, is purely additional. Also, a 457(f)/409A has no limits, but design constraints make it less likely to meet the doctor's needs.