Guest Jhagan Posted May 28, 1999 Posted May 28, 1999 What is the maximum annual addition Participant A could receive in the limitiation period? -Part. A participates only in the plan sponsor's profit sharing plan. -Limition period for the plan is Jan 1, 1996 -Part. A. has gross compensation of $58,000 for the limitiation period. Answer is $13,750. explanation?
david shipp Posted May 28, 1999 Posted May 28, 1999 Is something missing here? $13,750 is 25% of $55,000 which would make sense if A made a salary deferral of $3,000 in 1996 when 415 comp was reduced by salary deferrals. Otherwise, it would appear that the answer should be 25%of $58,000 which isn't what you indicate. I could be missing something, of course, but i can't see what (otherwise I guess I wouldn't miss it :-) )
Guest Jhagan Posted May 28, 1999 Posted May 28, 1999 Opps - the limitation period is January 1, 1996 to June 15, 1996. Sorry.
Bri Posted August 5, 2019 Posted August 5, 2019 So it's 5.5/12ths of 30,000. Seems straightforward, now..... Holy crap this question is 20 years old.....
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