Jhagan
May 28 1999, 03:49 PM
What is the maximum annual addition Participant A could receive in the limitiation period?
-Part. A participates only in the plan sponsor's profit sharing plan.
-Limition period for the plan is Jan 1, 1996
-Part. A. has gross compensation of $58,000 for the limitiation period.
Answer is $13,750. explanation?
david shipp
May 28 1999, 05:41 PM
Is something missing here? $13,750 is 25% of $55,000 which would make sense if A made a salary deferral of $3,000 in 1996 when 415 comp was reduced by salary deferrals. Otherwise, it would appear that the answer should be 25%of $58,000 which isn't what you indicate.
I could be missing something, of course, but i can't see what (otherwise I guess I wouldn't miss it :-) )
Jhagan
May 28 1999, 05:44 PM
Opps - the limitation period is January 1, 1996 to June 15, 1996. Sorry.
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