Truth or Nonsense ... an employee's $10,500 elective deferral does not

[Moe Howard]

I heard a rumor that for year 2000 .... an employee's $10,500 elective deferral does not have to be included in the "Section 415 annual addition limit of $30,000"... Thus, an employer can contribute $30,000 (not including the employee's $10,500 deferral). This would mean an annual addition of $45,000.

Has anyone heard of such a thing .... or is it simply nonsense ??

THANKS

[Fredman]

I say nonsense.

Is this a trick question?

[Guest fiddler]

I agree -- total nonense. Wish it were true -- give me an IRC citing and I'll begin using it myself.

[R. Butler]

Nonsense. That would have been big news by now.

[Guest]

some fool is confused.

its the old issue of 'comp is not reduced by deferral when calculating an individuals 415 limit'

[Guest Pam Gifford]

Maybe your rumor refered to the provision in the pension relief act that would have allowed employers not to include salary deferrals when calculating the maximum deduction limit?