401k deferrals and Compensation Limits..

[Guest alyssakim]

Hi ...i was wondering if someone can defer a percentage of their total compensation?

if over the Comp limit?

thanks

[Everett Moreland]

From 72 Federal Register 16889 (April 5, 2007):

"As noted above, the final regulations provide that a plan cannot take into account compensation in excess of the section 401(a)(17) limit. In addition, the final regulations provide that elective deferrals can only be made from compensation as defined in section 415©(3). However, in applying these two rules, a plan is not required to determine a participant’s compensation on the basis of the earliest payments of compensation during a year."

[Guest Sieve]

In other words, Yes.

[david rigby]

As always, read the plan document.

[movedon]

Spam.

[Mike Preston]

Possibly, but unlikely.

[Tom Poje]

actually, highly likely. 100 points for Lippy for noticing it!

I'd delete the post, but this is a good example of stuff to look for..

note the individual provides a .com website, a quick look on the internet reveals this to be one of those pharmacutical companies you can't stand getting e-mails from.

a search of the person's profiles reveals 3 posts. looked at another and the person's response was just as cryptic.

[david rigby]

I agree that it appears to be a (not very) subtle way of placing a link. However, it appears to conform to the conditions set out here:

http://benefitslink.com/boards/index.php?showtopic=43592

[masteff]

I have to grant the possible spammer was rather sophisticated in posting a seemingly valid question... but I do note it's suspiciously close to this thread from '08: http://benefitslink.com/boards/index.php?showtopic=39562 Even the follow-on of "if over the comp limit" is the same.

[Guest Sieve]

If a .com signature line is the spam standard, then many are guilty. If we can't rid ourselves of Mr. Wallach, then this is a mere minor annoyance.