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Subject:  Re: 401(k) Confusion (Pixy?) Date:  4/25/2001  1:11 PM
Author:  TMFPixy Number:  29311 of 88473

The Hendrys ask:

Can you clarify? Is it 15% or 25%?

It is both depending on what you're talking about. The thread you were referring to talked about a defined contribution plan that was a profit sharing plan only. By law, a profit sharing plan is limited to 15% of compensation. A defined contribution plan with a money purchase option goes up to 25%. While a 401k plan is often thought of as a profit sharing plan, the overall plan may include other features that allow for the 25% limit.

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