[9818]
April 2, 1998
TO: PENSION COMMITTEE No. 19-98
RE: SENATOR GRASSLEY INTRODUCES LEGISLATION TO MODIFY SECTION
415(c)
______________________________________________________________________________
Senator Grassley (R-IA) recently introduced the Enhanced Savings Opportunities Act, S. 1856,
which would modify section 415(c) of the Code for defined contribution plans. Under section 415(c),
total contributions by an employer and employee into a defined contribution plan are limited to 25% of
compensation or $30,000. The bill would eliminate the 25% limitation and retain $30,000 as the limit for
defined contribution plans.
A copy of the legislation is attached.
Kathryn A. Ricard
Assistant Counsel
Attachment