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Investing/Strategies / Retirement Investing
|Subject: Re: 401k problem||Date: 12/2/2006 6:15 PM|
|Author: foolazis||Number: 54590 of 77406|
(B) Matching contributions
(i) In general The requirements of this subparagraph are met if, under the arrangement, the employer makes matching contributions on behalf of each employee who is not a highly compensated employee in an amount equal to—
(I) 100 percent of the elective contributions of the employee to the extent such elective contributions do not exceed 3 percent of the employee's compensation, and
(II) 50 percent of the elective contributions of the employee to the extent that such elective contributions exceed 3 percent but do not exceed 5 percent of the employee's compensation.
My company switched to such a safe-harbor plan several years ago, which finally allowed me to contribute more than 7% to my 401(k). Get you fellow workers together and lobby to convert to a "safe-harbor" 401(k) plan.
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