401(k) Excess contributions?

From: "Ravinder Bhumbla" <rbhumbla@ford.com>
Subject: 401(k) Excess contributions?
Date: Mon, 28 Sep 1998 14:33:39 -0400

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In 1997 I changed employers mid-year.  My previous employer allowed me to
contribute over 30% of my salary to my 401(k) during the first half of the year
and it was enough for me to reach the $9500 IRS limit before I changed jobs (I
was not eligible for a 401(k) at the new employer that year).

Now, my previous employer tells me that I overconributed and need to have the
excess contributions returned to me.  This refers to the 25% max deferral rule
(Section 415?).  They say that my contributions exceeded 25% of my salary with
the old employer even though they were less than 25% of my total W-2 wages for
1996.  They say that salary earned at the new employer cannot count towards my
contributions at the previous employer.

My question: Does the 25% IRS limit apply to the TOTAL salary I earned in 1997
(W-2 wages) or is the contribution at EACH employer limited to 25% of what that
particular employer paid me?

I'd appreciate any answers and if possible reference to a citation that I can
give my previous employer.

Thanks,

- -- 
Ravinder Bhumbla 	rbhumbla@av1377.pd8.ford.com	(313) 322-6601
I do not speak for Ford Motor Company

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