Non Calendar Plan and Compensation for Initial Short Year

[Susan S.]

If the initial plan year for a 6/30 plan is a short year from 1/1/15 - 6/30/15, is the compensation limit for the short period half of the 2015 limit of $265,000? Relius appears to be calculating based on half of the 2014 limit instead of 2015.

[Tom Poje]

if plan year begins 2015 then the limit should be pro rata for the 2015 year, not the 2014 year (so I would use 1/2 the 265,000 limit. it shouldn't matter if it is the initial year.

If I had a calendar year plan and amended to a short year beginning in 2015 the results should be the same.