DC 415 limit with catch-up

[drakecohen]

Any problem with this scenario:

Corporation-sponsored Profit Sharing Plan with 401(k) feature including catch-ups

One participant

2012 salary: $250,000

2012 Profit Sharing contribution $50,000

2012: 401(k) deferral: $5,500

[ETA Consulting LLC]

No problem. Your asking if it is necessary to meet 402(g) or a deferral limit in order to be catchup eligible. You do not, but need to meet any statutory or plan limit. 415 is a statutory limit, so your scenario is fine.

Good Luck!

[Mike Preston]

I think it is fine, too, but please be aware that some folks at the IRS think that the ordering of things is material. There have been many long threads on this issue.