401(K) with profit sharing contribution. If catch up is being used is the maximum $42,000 increased by the amount of the catch up?

Thanks.

Steve

No, catch ups are not included when calculating annual addition. Only those deferrals under 402g are counted.

Or to put it another way:

Yes, we have no bananas.

I'm not sure I understood either response to question. I think the answer is, "yes", the $42,000 amount is increased. 402g & ADP catch-up don't count towards 415 limit. The sum of catch-up plus other annual additions for 2005 may exceed $42,000 limit. Deferrals may also be treated as 415 catch-up, if needed.

Only deferrals in excess of 402g are catch-ups, in my understanding. So deferrals over $14,000 in 2005 could possibly be catch-ups.

Yes, 415 would disregard up to $4,000 (2005) of deferrals in excess of $14,000.

I disagree or did not understand your choice of words. As soon as the participants contributions hit any limit, deferrals can be classified as catch-ups. Those limits include 402(g), 415, or can be limited by the outcome of the ADP test.

As an example...in 2005 a participant can defer $4000, receive a $42000 profit sharing contribution and classify the entire deferral as catchup.

or am I missing something?

I am not sure where the banannas came from but they don't taste very good with catchup.

Tbob, I agree with you -there are 3 limits to take into account for catch-up purposes.

4 - plan limit too