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I was under the impression that employees are limited to depositing a maximum of 20% of their
salary at any time into their 401(k) account.

Different companies allow different amounts of an employees wages to be contributed to a 401k Plan. The guidelines they must follow from the IRS are: For 1999 the maximum Pre-Tax contribution is $10,000.00. There are further restrictions: The sum of the employees contribution, the employer matching contributions, and any contribution made on the employees behalf to a qualified pension or retirement plan may not exceed 25% of the employees wages, or $30,000.00 which ever is less.

Also if you are determined to be a Highly Compensated Employee, roughly defined as making over $80,000.00 you may be subject to much stricter limits. This has to do with the non- descrimination tests put in place to insure that the plans do not favor any particular class of employees,particularly the executive level. Hope this is of some help. I will run down some web sites and post later. Roger
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