La. Admin. Code tit. 32 § VII-305

Current through Register Vol. 50, No. 9, September 20, 2024

Section VII-305 - Roth Catch-up Contributions

A. For one or more of the participant's last three taxable years ending before the taxable year in which normal retirement age under the plan is attained, the maximum deferral shall be the lesser of:

1. twice the otherwise applicable dollar limit under IRC §457(e)(15) for that taxable year; reduced by any applicable amount specified in LAC 32:VII.303.B; or

2. the sum of:

a. an amount equal to the aggregate limit determined by §303A. of this Plan for the current year and any prior calendar years beginning after December 31, 2001, during which the participant was eligible to participate in this Plan, minus the aggregate amount of compensation that the participant deferred under this Plan during such years, plus

b. an amount equal to the aggregate limit referred to in IRC §457(b)(2) for each prior calendar year beginning after December 31, 1978, and before January 1, 2002, during which the participant was an employee, minus the aggregate contributions made by the participant to pre-2002 coordination plans for such years.

B. If a participant is not a member of a defined benefit plan in any public retirement system, normal retirement age may not be earlier than age 65, and may not be later than age 70 1/2.

C. Pre-2002 Coordination Years

1. For purposes of this §305, Contributions to Pre-2002 Coordination Plans means any employer contribution, salary reduction or elective contribution under:

a. any other eligible Code §457(b) plan; or

b. a salary reduction or elective contribution under any Code §401(k) qualified cash or deferred arrangement;

c. Code §402(h)(1)(B) simplified employee pension (SARSEP);

d. Code §403(b) annuity contract; and

e. Code §408(p) simple retirement account; or

f. any plan for which a deduction is allowed because of a contribution to an organization described in Code §501(c)(18), including plans, arrangements or accounts maintained by the employer or any employer for whom the participant performed services.

2. Contributions for any calendar year are only taken into account for purposes of this §305 to the extent that the total of such contributions does not exceed the aggregate limit referred to in Code §457(b)(2) for that year.

D. Beginning on January 1, 2026, for any participant whose wages exceeded $145,000 in any calendar year (as adjusted under IRC §414(v)(7)(E), any contribution made under this §305 in the subsequent calendar year must be a designated Roth contribution. Any otherwise eligible participant whose wages do not exceed $145,000 in any calendar year (as adjusted under IRC §414(v)(7)(E) may designate any contribution made under this §305 as a designated Roth contribution.

La. Admin. Code tit. 32, § VII-305

Promulgated by the Department of the Treasury, Deferred Compensation Commission, LR 24:1965 (October 1998), amended LR 28:1496 (June 2002), LR 32:120 (January 2006), LR 37:1620 (June 2011), Amended LR 501011 (7/1/2024).

AUTHORITY NOTE: Promulgated in accordance with IRC §457 and R.S. 42: 1301-1308.