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http://boards.fool.com/the-hendrys-ask-can-you-clarify-is-it-15-or-14841818.aspx
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| Subject: Re: 401(k) Confusion (Pixy?) | Date: 4/25/2001 1:11 PM | |
| Author: TMFPixy | Number: 29311 of 72499 | |
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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. Regards..Pixy |
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