I have a 401k at my company. Is the 15%, 10K maximum restriction just for my portion, or is it for the sum of my portion and the match portion combined?
Your portion. There is some limit (30k?) for the combined contribution(I think).
DrMerlot asks:<<I have a 401k at my company. Is the 15%, 10K maximum restriction just for my portion, or is it for the sum of my portion and the match portion combined?>>It depends on the type of defined contribution plan you have. A profit sharing plan is limited to 15% of compensation while a money purchase plan can go up to 25%. Many firms use the two in combination. Legally, you and your employer combined may contribute up to the lower of 25% of your compensation or $30K. You alone are limited to the lower of $10K or up to 25% of your gross compensation. The plan itself may further limit the percentage you may contribute, and many plans do so they will have an easier time of passing compliance/discrimination tests of the plan. It can get even more complicated. Suppose your plan has no percentage cap on your contribution, but it does match your contributions dollar-for-dollar up to 6% of your pay. You, then, would be limited to 19% of compensation (25% minus 6%) or $10K, whichever was less. Together you and your company would be contributing the 25%.For details on your situation, you should talk with your benefits folks.Regards..Pixy
DrMerlot, you asked:<< I have a 401k at my company. Is the 15%, 10K maximum restriction just for my portion, or is it for the sum of my portion and the match portion combined? >>The maximum contribution in a 401(k) for the year 2000 will be $10,500. Where YOU can contribute as much as 15% up to this amount DEPENDS on a few things . .. .like, how many highly compensated employees (which for the year 2000 will be those with incomes of $85,000 or more) your employer has as apposed to other eligible participants. There can be limitations that can keep you from contributing the maximum. So you'll need to consult with your plan administrator.
That 10K limit is exclusively for your pretax contributions (company match and after tax contributions are not included). You may make additional after tax contributions up to the % limit (if you are not otherwise limited as a highly compensated, ie, management employee).Most companies state their % limit in their plan information package. The stated limit is usually sum of pretax and aftertax contributions and does not include company match.
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