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Another Short Plan Year Question


Hoard1

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Posted

A group of Doctors started their Practice on 10/1/99. None were previous owners in the PA's they came out of. Can they make their Plan effective 1/1/99 to get a full 415 limitation for 1999 even though the Practice

was fromed on 10/1/99.

Posted

Well, the answer is "yes" sort of. They get the full 415 limit on whatever they earned from the new employer (your limit will probably be 25% of the comp earned in the short year, not the $30,000 limit).

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