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I agree with TheBadger's answers. 401(k) with a PS provision is nice if you can afford the administration.

The 415 limit is actually the lesser of 25% (not 20%) or $30,000. Max 401(k) deferral is $10,000.

Keep in mind two other things: if the lions get too big of a share, you could have top heavy issues; and deductibility for the employer is 15% of covered compensation.

Also, compensation for plan purposes is currently limited to $160,000, so all percent limits are based on that maximum comp.

Hitting the $30k max. can be tough because of discrimination testing requirements. The non-highly compensated participants' contribution rates will affect the max that the highly's can defer.

Lots of good issues here. Hope this helps.

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