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Annual Additions--include dependent care account?


Guest Martha A. Hayner

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Guest Martha A. Hayner
Posted

Just need to confirm that contributions to a dependent care account are also included in the annual additions calculation (along with elective deferral, match, profit sharing, forfs., etc.)

Posted

Dependent care is under IRC 125. Annual additions are under 415. Dependent care have nothing to do with annual additions under a qualified plan.

However, since pay definition under 415 now include all deferrals under 401, 125, 403 and 457 the limit is greater than it was pre 1998. But it is pay definition, not annual additions that includes dependent care.

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