No. of Recommendations: 0
By the way, one of my colleagues who used to do pension management for companies said the reason they had the limit here is because the total that a company can claim as expenses for tax purposes is 25%, so the 15% limit I'm allowed plus the 5% they match plus the 5%+ they put in our cash balance plan would be the max for expenses the company can claim for its taxes.

Apparently, to offset raising my allowed contribution rate, they've capped the cash balance plan contributions at 5%, whereas they used to step up to 8% based on years employed plus age of employee.

I have no idea why an organization that has a 403(b) would have limits, since as I understand it, these organizations are not for profits, anyway. Hence, no tax effect.

3MM
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement