Cash Balance Maximum Contribution

[rcline46]

Third year of CB plan, takeover of course! When computing the maximum contribution with cushion we get $210,000. The hypothetical balances are $216,000.

Now we get to the fun part - client contributed $80,000 before we got the plan. So now we compute the maximum as cushion amount less assets (and remember 2009 was a very good year for assets) and we have assets (not counting contributions and all the other adjustments) of $146,000.

So max contribution is $64,000 and client put in $80,000 before the end of the year - a $16,000 overage. If we were to use the hypothetical as maximum we reduce the overage to $10,000.

Can we use the hptothetical balance as the maximum?

[FAPInJax]

My initial reaction is No (not directly).

Now, that being said, there is no mention of the at-risk numbers (which may be used to increase the 404 limit) or the substantial expenses <GGG> which should be added to the cost which affect the maximum again.