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Contribution to 403( b) and defind contribution Keogh paln

My brother has a 403(b) through his university; he has contributed $20,000 to the plan for 2008. He has also a consulting company. He is the owner and only employee of this consulting company. He has the money purchase and profit sharing plans set up for this consulting from previous years. His net income for 2008 would allow him to contribute $ 46,000 to the Keogh plan. He is over 50 years old. Can he still contribute the $46,000 for 2008 when he has already contributed to 403(b)???

Reply to
taxmax
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Your into a complex part of retirement plan taxation. The simple answer is that Sec. 415 and its regulations require that the two plans be aggregated to determine the contribution limits. Therefore, the maximum Keogh contribution would be limited to $26000 for 2008, assuming that the Keogh was created by year-end

2008.

For a better understanding, go to the following link and read bullet 7.

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Reply to
Alan

7.
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 Thank you very much for directing me to the link. One more question. Since my brother is over 55, will that $28,000 increase to $32,000 ( $28,000 to $5,000)?
Reply to
taxmax

7.
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I have no idea what you are asking, nor do I recognize any of the numbers.

In 2009, the overall limit is $49,000 and the 403(b) limit is $22,000 (16500 + 5500) including the catchup.

Reply to
Alan

7.
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>

How much is total limitation for 2008 for people over 50 years old?

Reply to
taxmax

7.
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>>> Thank you very much for directing me to the link. One more question.>>> Since my brother is over 55, will that $28,000 increase to $32,000>>> ( $28,000 to $5,000)?>> I have no idea what you are asking, nor do I recognize any of the >> numbers.>>

Already answered. See your OP and my first reply. 20K + 26k = 46K.

Reply to
Alan

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