First, with that kind of volume, you meet the requirements, if you jump through the hoops. I think beyond making a timely election, you have to create (or at least act as if you have created) a separate day trading entity. I know some people create LLC’s for the purpose though I don’t think it’s essential. (I could be wrong on that.)
Yes on the retirement plan contributions, though I’m not sure of the current max dollar limits, but you are correct, they are inclusive of other plan contributions from your w-2 employer.
Keep in mind that you will have to pay extra, at very least for medicare tax, and dependent on your income, extra bonus medicare tax on earnings that will in part offset the extra deductions. And you lose the 60/40 LT/ST split for options/futures/forex net gains.
When your 2012 tax return is finished, re-compute as if you had made the election, and see if it works.
