401k contributions 2008
Do I go by calendar year or plan year on contribution limits? my dad’s plan year ends in july. Does he get to use the calendar year to max out his contributions. he’s over 60.
Do I go by calendar year or plan year on contribution limits? my dad’s plan year ends in july. Does he get to use the calendar year to max out his contributions. he’s over 60.
Permalink Submitted by Alan Spross on Wed, 2008-06-25 18:58
The calendar year applies to elective deferrals under 402(g) as well as catch up contributions. There is no pro rating applicable. Therefore, if his limit is 20,500 for CY 2008 then that is the total he can contribute over both plan year portions in 2008.