"For a Section 403(b) participant who's 61, has 15 years of service with a qualified organization, and sufficiently little past contributions, is $39,500 [$24,000 + $12,000 (age-based catch-up) + $3,000 (I.R.C. Section 402(g)(7))] her elective-deferral limit?"

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"Our NQDC plan is approaching the first vesting cliff at the end of this year. The vesting occurs basically at 12/31/2025. Since the value of the plan is based on underlying investments and not a fixed interest rate and could move quite a bit by year end, I plan on using the Lag Method to report the FICA earnings. I anticipate this will be run through payroll around the end of January or more likely the end of first week of February. I know that for the Lag Method, I have to report not only on the vested balance but also add interst to the vested amount. From what I have read the amount must be increased by interest through the date on which the wages are treated as paid, at a rate that is not less than the January Mid-Term AFR.

"For purposes of illustration, assume that an original award of $50,000 several years ago is valued at $62,000 as of 12/31 based on credited earnings. Vesting will be credit on paydate 2/7/2026. Mid Term January AFR rate is 3.8% . Calculation:

• Vested Amount at 12/31 -- 62,000
• Multiplied by AFR Rate -- 3.80%
• Equal Annual Interst -- $2,356
• Multiplied by Days until Reported / 365 days in year -- 38/365 = .1041 -- 31 days in January plus 7 days in February until paydate
• Equals Interest to be added to Vested Amount -- $245.28
• Vested Amount ($62,000) plus Interest ($245.28) = $62,248.28 = Total Amount subject to FICA

'1) Is my understanding of the Lag Method correct? 2) Does my method of calculating interest make sense?"

"A single member business guy setup a plan (Solo) and rolled into the plan old pension money he had from when he worked somewhere else. He is telling me some of the money is Voluntary After Tax contribution money.... not Roth deferrals. He took a distribution from the VAT money rolled into the plan. Do you treat VAT distributions the same way you treat Roth distributions?"