401(a)(17) Limit

[Guest Gumby]

As long as a participant's aggregate 401(k) election does not "take into account" more than $245,000 in compensation, does it matter if a participant first elects to participate in a 401(k) plan at some point in the year after which he has already earned $245,000? In this case, the deferrals would technically be made out of compensation beyond the first $245,000. Perhaps it's all fungible, however.

[BG5150]

There's nothing out there that says deferrals must be made from the FIRST $245,000 earned.