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provides for benefits or contributions which exceed the
limitations of section 415.
Section 415(a)(1) provides that a trust which is part of a
pension, profit-sharing, or stock bonus plan shall not constitute
a qualified trust under section 401(a) if--
(B) in the case of a defined contribution
plan, contributions and other additions under the
plan with respect to any participant for any
taxable year exceed the limitation of subsection
(c) * * * [.]
Section 415(c)(1) provides:
Contributions and other additions with respect to a
participant exceed the limitation of this subsection
if, when expressed as an annual addition (within the
meaning of paragraph (2)) to the participant's account,
such annual addition is greater than the lesser of --
(A) $30,000,[3] or
(B) 25 percent of the participant's compensation.
Section 415(c)(2) provides that "annual addition" means the sum
for any year of--
(A) employer contributions,
3 Sec. 415(c)(1)(A) was amended by the Tax Reform Act of
1986, Pub. L. 99-514, sec. 1106(a), 1106(i), 100 Stat. 2420,
2425, effective for years beginning after Dec. 31, 1986, to read
"$30,000 (or, if greater, 1/4 of the dollar limitation [$90,000]
in effect under subsection (b)(1)(A))". It was further amended
to eliminate the parenthetical language effective for years
commencing after Dec. 31, 1994. Uruguay Round Agreements Act,
Pub. L. 103-465, sec. 732(b)(2), 108 Stat. 5005 (1994).
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