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Fundamentals 09: Allocation and Deduction Limits [2017]
Presentor: David Schultz Recorded Date: 12/4/2017 Duration: 60 Min.

This program was recorded during a live presentation given on December 4, 2017 at 12:00PM EST.

Do you need to train someone new? Do you need to brush up on the basics, or to fill in gaps in your knowledge? SunGard’s Fundamentals Series may be just what you need. 16 convenient 1-hour web seminars provide the information a pension practitioner needs to function effective in the modern 401(k) world. Pick and choose the topics you need, or participate in the entire series: the choice is yours. Our standard pricing has been discounted to make attendance to all sessions in this series more cost effective. The series will cover the following:

  • Fundamentals Series 01: Eligibility
  • Fundamentals Series 02: Vesting
  • Fundamentals Series 03: Compensation and HCEs
  • Fundamentals Series 04: Coverage Test (Ratio Percentage Only)
  • Fundamentals Series 05: Elective Deferrals
  • Fundamentals Series 06: ADP/ACP Test
  • Fundamentals Series 07: Safe Harbor 401(k) Plans
  • Fundamentals Series 08: Nondiscrimination Testing and Allocations
  • Fundamentals Series 09: Allocation and Deduction Limits (415 and 404)
  • Fundamentals Series 10: Top-Heavy Testing
  • Fundamentals Series 11: Controlled Groups
  • Fundamentals Series 12: Participant Loans
  • Fundamentals Series 13: Distributions
  • Fundamentals Series 14: Fiduciary Requirements; Reporting and Disclosure

Fundamentals 09: Allocation and Deduction Limits (415 and 404) [2017]

Section 415 of the Code places a cap on the amount of annual additions that may be contributed to a participant’s retirement account. This year the 415 limit is $53,000. Many unique retirement plan features are designed around the 415 limit.

An employer’s primary concern with a 401(k) plan is whether its contributions will be deductible in the year contributed. Section 404 of the Code provides an annual deduction limit. This program discusses both of these key limitations and the consequences of contributing a nondeductible contribution to a 401(k) plan.

Topics include:

  • Annual additions
  • Compensation and dollar limits
  • Contribution timing
  • Fiscal year plans
  • Deduction limit
  • Participants used in deduction limit
  • Participant compensation
  • Excess nondeductible contributions
  • Excise tax
  • Minimum contributions
  • Self-employed individuals

There are no prerequisites or other advanced preparation for this program. No prior experience needed.

Level: Beginning.

Instructional Delivery Method
Group – Internet-Based

NASBA Field of Study: Taxes

Speaker: David Schultz, J.D.

Objectives: After participating in this program, an attendee should be able to:

  • Apply the 415 limit to participants
  • Correct 415 violations
  • Calculate the annual deductible limit
  • Calculate compensation used for deduction and 415 purposes
  • Determine the excise tax for nondeductible contributions


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