303 Neb. Admin. Code, ch. 17, § 003

Current through September 17, 2024

Section 303-17-003 - Defined Contribution Plan 415 Limitations

003.01 Maximum annual contribution: The annual contribution that may be contributed or allocated to a member's account under a defined contribution plan for any limitation year beginning on or after December 31, 2010 shall not exceed the lesser of:

003.01(a) $49,000, as adjusted for increases in the cost-of-living under section 415(d) of the Code, or

003.01(b) 100 percent of the member's compensation, within the meaning of section 415(c)(3) of the Code, for the limitation year.

003.02 Maximum compensation amount for employees hired on or after January 1, 1996:

The annual compensation of each member hired on or after January 1, 1996 taken into account in determining allocations for any plan year beginning after December 31, 2010, shall not exceed $245,000, as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. Annual compensation means compensation during the plan year or such other consecutive twelve (12) month period over which compensation is otherwise determined under the plan (the determination period). The cost-of-living 2. adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.

003.03 Maximum compensation amount for employees hired on or before December 31, 1995:

The annual compensation of each member hired on or before December 31, 1995 taken into account in determining allocations for any plan year beginning after December 31, 2001 shall not exceed the amount which was allowed to be taken into account under the retirement plans as in effect on July 1, 1993, shall not exceed $360,000, as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. Annual compensation means compensation during the plan year or such other consecutive twelve (12) month period over which compensation is otherwise determined under the plan (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.

303 Neb. Admin. Code, ch. 17, § 003