(A) For one or more of the last three taxable years of the participant ending before the participant’s normal retirement age, the maximum amount of deferred compensation is the lesser of: $15,000 or the sum of: the normal limitation for the taxable year plus the sum of the normal limitation for each of the “prior taxable years” (as defined below) of the participant commencing on or after January 1, 1979 less the amount of deferred compensation for each such prior taxable year.
(B) For the purpose of this section, a PRIOR TAXABLE YEAR means a prior taxable year of the participant that begins on or after January 1, 1979 during which the participant was eligible to participate in an eligible deferred compensation plan (according to Treasury Regulations under I.R.C. § 457(b)(3)) and during which deferrals under the plan were subject to a plan ceiling established under Treasury Regulations § 1.457-2(e)(1).
(C) For purposes of this section, a participant’s includible compensation for the current taxable year is deemed to include any deferred compensation for the taxable year in excess of the amount permitted under the normal limitation, and the participant’s includible compensation for any prior taxable year is deemed to exclude any amount that could have been deferred under the normal limitation for such prior taxable year.
(Ord. NIRC 97-1, passed 1-15-1997)