2/27/2018 Individuals, This program provides statistical 2014 Form W-2 tables on individual income Tabulations taxpayers with amounts found on Form W-2, "Wage and Tax Statement." The statistical tables provide detailed information about individual wages, tax withholding, elective deferral contributions
, and retirement plan participation.
All contributions to the annuity contracts were made pursuant to salary reduction agreements and were comprised of elective deferral contributions
The last day to make employee elective deferral contributions
is 30 days after the end of the month for which the contributions are made.
This problem is in particular noted with 401(k) plans in which the employees are 100% vested in elective deferral contributions
but cannot access the funds without terminating employment.
Elective deferral contributions
to a 401(k) plan are no longer subject to the employer contribution deduction limit of 25 percent.
As you may be aware, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) provided that individuals age 50 or over may make additional elective deferral contributions
to retirement plans that permit elective deferrals- i.e., 40 1(k) plans, 403(b) annuities, 457 plans, SEPs, or SIMPLEs.
Consequently, 401(k) elective deferral contributions
will no longer need to be limited to ensure that employer deduction limits are not exceeded.
Under the old law, for purposes of the deduction limits, employee elective deferral contributions
to a 401(k) plan are treated as employer contributions and as a result are subject to the generally applicable deduction limits.
401(k) and 403(b) plans do not discriminate in favor of highly compensated employees (HCEs).The ADP test applies to employees' elective deferral contributions
; the ACP test applies to an employer's matching contributions.
Department of Labor (DOL) has revised the instructions to IRS Form 5500 to require plan auditors to review the deposit of 401(k) elective deferral contributions
and to confirm that the plan sponsor has deposited these contributions in a timely manner.
Self-employed individuals and corporate owners may make 401(k) elective deferral contributions
and employer contributions at their discretion.