New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 7 - ALTERNATE BENEFIT PROGRAM
Subchapter 12 - NEW JERSEY ADDITIONAL CONTRIBUTIONS TAX-SHELTERED PROGRAM (ACTS)
Section 17:7-12.7 - Elective deferrals

Universal Citation: NJ Admin Code 17:7-12.7

Current through Register Vol. 55, No. 48, December 18, 2023

(a) Except as provided in (b) below, the maximum amount of the elective deferral under the ACTS for any calendar year shall not exceed the lesser of:

1. The applicable dollar amount, meaning the amount established under IRC § 402 (g)(1)(B) and is adjusted for cost-of-living to the extent provided under IRC § 402(g) (4) for periods after 2013; or

2. The participant's includible compensation, as defined in NJ.A.C. 17:7-12.10(h), for the calendar year.

(b) An employee who is a participant who will attain age 50 or more by the end of the calendar year is permitted to elect an additional amount of elective deferrals, up to the maximum age 50 catch-up elective deferrals for the year under IRC § 414(v).

(c) Amounts in excess of the limitation set forth in (a) above shall be allocated as an age 50 catch-up contribution under (b) above. However, in no event can the amount of the elective deferrals for a year be more than the participant's includible compensation for the year.

(d) If the participant is or has been a participant in one or more other plans under IRC § 403(b) (and any other plan that permits elective deferrals under IRC § 402(g)), then the ACTS and all such other plans shall be considered as one plan for purposes of applying the limitations of this section. The Plan Administrator shall take into account any other such plan maintained by any related employer and shall also take into account any other such plan for which the Plan Administrator receives from the participant sufficient information concerning his or her participation in such other plan. Notwithstanding the foregoing, another plan maintained by a related employer shall be taken into account for purposes of (b) above, only if the other plan is an IRC § 403(b) plan.

(e) If the elective deferral on behalf of a participant for any calendar year exceeds the limitations described in this section, or the elective deferral on behalf of a participant for any calendar year exceeds the limitations in this section when combined with other amounts deferred by the participant under another plan of the employer under IRC § 403(b) (and any other plan that permits elective deferrals under IRC § 402(g) for which the participant provides information that is accepted by the Plan Administrator), then the elective deferral, to the extent in excess of the applicable limitation (adjusted for any income or loss in value, if any, allocable thereto), shall be distributed to the participant. To the extent that the excess amount is composed of pre-tax elective deferrals and Roth elective deferrals for the year, if the participant does not designate which type of elective deferral to be distributed on the applicable form, the ACTS will distribute the pre-tax elective deferrals first.

(f) The provisions of IRC § 402(g)(7) do not apply to the ACTS.

(g) The ACTS will accept Roth elective deferrals under IRC § 402A.

Adopted by 50 N.J.R. 1616(a), effective 7/16/2018

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