Flyboyjohn Posted March 2, 2015 Posted March 2, 2015 What am I missing: Employee over age 49 has 2015 gross wages of $26,000 Makes max elective deferral of $24,000 Employer contributes $6,500 (25%) What limit is being violated?
BG5150 Posted March 2, 2015 Posted March 2, 2015 None* $24,000 deferral ($6,000) catchup $18,000 net deferral $6,500 PS. Total $24,500 testable under 415. Under by $1,500. (*) assuming no other underlying document limits such as a deferral limit under 92% ETA Consulting LLC 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Appleby Posted March 9, 2015 Posted March 9, 2015 But...that is more than 100 percent of compensation. Doesn't that violate 415© Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
Belgarath Posted March 9, 2015 Posted March 9, 2015 Assuming catch-up eligible, catch-up is not an "annual addition" subject to 415. See 414(v)(3)(A)(i) and 1.415©-1(b)(2)(ii)(B). John Feldt ERPA CPC QPA and Appleby 2
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