A new plan is beginning 1/1/2008. The sole participant is 72 years old and is anticipated to retire at 77. The 415 $ limit is roughly 500,000 at 77. He has 10 years of service already and has compensation of 400,000.

I realize that the 415 compensation limit is now based on the 401(a)(17) limited compensation which effectively limits his pension (unlike the good ol' days <G>).

However, what benefit can he accrue during 2008??

a) 1/10 of the 415 $ limit (50,000)
b) the compensation limit (230,000 - using the 10 years of service and anticipating 5 years of participation at retirement)
c) something else

My personal preference is for a)

I vote for (a) as well since this is less than his 415 high-3 limit which is (10/10ths)($230,000), and the lesser 415 limit applies.

Sweet, I vote for (a).