DanEA
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411 accrual limits to 415(b) max benefits
DanEA replied to DanEA 's topic in Defined Benefit Plans, Including Cash Balance
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A newly formed Cash Balance Plan has in the first year a 415(b) accrual limit of $275,000 x (1/10) = $27,500. In the second year the 415(b) accrual limit is $275,000 x (2/10) = $55,000 which is double (assuming no 415(b) $lim increase. Does the 133 1/3 accrual rule limit the second year accrual to 133 1/3 times the first year accrual?