Annual Additions

[DTH]

Governmental 457(b) plans are not subject to 415©(1)(A) defined contribution limitation. Governmental 401(a) plans are subject to the limitation. For the governmental 401(a) limits test do you include deferrals made to the employer's 457(b) plan? I don't think so. Can you please provide a site.

Thanks!!

[Carol V. Calhoun]

No, you do not. Treas. Reg. § 1.415©-1(a)(2)(i) specifies which contributions to defined contribution plan are treated as "annual additions" subject to 415©. They include only contributions to:

(A) A plan described in section 401(a) which includes a trust which is exempt from tax under section 501(a);

(B) An annuity plan described in section 403(a); or

© A simplified employee pension described in section 408(k).

Thus, a contribution to a 457(b) plan is not part of annual additions for purposes of section 415©.