SPollock
Jan 18 2000, 10:24 AM
I have recently taken over a Profit Sharing Plan for a company. One the the HCEs has been unable to receive a contribution because of max contributions to a DB plan in the past. My understanding is that as of Plan Year 2000 he will be able to receive a contribution to the DC plan. How do we determine the amount he can receive? Must we use the old DB balance in some formula? Thank you!
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dsilver
Jan 18 2000, 12:19 PM
If the plan has been amended, or by default the 415(e) limits on contributions/benefits to both defined contribution and defined benfeit plans, the usual dc formula would be followed going forward in making contributions. You don't look at the db plan in doing this, just the dc plan.
SPollock
Jan 18 2000, 02:20 AM
Thank you for your help. I thought that might be correct but I wanted to hear from someone, like yourself, who was sure. Thank you again!
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