Greetngs, Frazierb, and welcome. You wrote:<<I think the article as a whole provides a valid point, but I don't think the figures the author researched completely dispute the original "facts". On the 401K point, I think he is confusing the definitions of maximum contribution. There are two: the statute limit ($10,500) and individual plan limits (typically 15% of base earnings). Many people, myself included, are contributing the max they can to their company's plan. However, we don't make enough to contribute the statutory max of $10,500. The max I can contribute to my plan at my current salary is about $9,000. Therefore, I am contributing the max under the definition I think the ICI is using, but I am not contributing the max based on the legal limit. >>For defined contribution plans in general the maximum limit is the smaller of 25% of pay or $10,500. In a profit sharing arrangement, that becomes 15% or $10,500. It really depends on the plan you have. I would conceed it's possible to have a money purchase plan in which your employer for compliance testing purposes has limited your contribution to 15%. In that case, it's conceivable you could not reach the statutory limit of $10.5K. Still, you have contributed the maximum possible amount you could to that plan.In any event, I'm pleased you question my data as well. That was the whole purpose of the article -- To get you and others to think and not blindly accept what some columnist writes. You did that, so congratulations. You passed the test.Regards..Pixy
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