For states that have adopted the EGTRRA provsions, the 403(B)(2) part of the old MEA calculation goes away completely effective Jan. 1, 2002. What about in states that have not passed legislation to comply with the EGRTTA limits particularly California? I am of the opinion the MEA/MAC limit has to be calculated the"old" way? (i.e using 403(B)(2) Is there agreement for this opinion or does anyone think otherwise?

The state does not have the ability to alter the federal limits, or to prevent employees of nongovernmental organizations from contributing amounts in excess of the old MEA limits. However, depending on state law, you may find either that (a) state or local schools and universities are forbidden from allowing participants to contribute more than the old MEA, or (B) contributions in excess of the MEA are treated as part of the participant's income for state income tax purposes, even though they are excluded for federal income tax purposes.