415 limit off-calendar year plan

[Guest Peggy806]

Plan year ends 6/30/09. Employee makes deferrals of 15,500 in late 2008 and 16,500 in early 2009. Therefore, he has not exceeded the 402g limit. Do we count 32,000 in deferrals in plan year ending 6/30/09 and show that he only has 17,000 remaining to reach his 415 limit for pye 6/30/09?

[WDIK]

I believe that is correct.

[Guest Sieve]

Yes (assuming that the plan's limitation year--which is the measuring stick for Section 415 limitations--is the same as the plan year).

[Mike Preston]

And assuming none of the deferrals end up being cast as catch-ups.

[Bill Presson]

Make sure to warn everyone that this participant can't defer for the rest of this calendar year!!