No. of Recommendations: 0
Ok I guess, you stand by yours and I'll stand by mine.
I agree on the 100% of pay deal, but someone earning a substantial income can defer the full 12k, receive 25% employer contribution (those 2 amounts cannot exceed 40k)(Thus your CFP training is correct when iot states the 415 limit is 40k.) Then do an additional 2k catch up.
I like my Society of Actuaries link as a basis. You don't mess with actuaries, they are right 99.5678943% of the time.
Anyway, not to sound like a smartie pants either, but I sell this stuff and train CFPs on retirement plans.
Maybe I'm wrong on this, and if so, will be greatly appreciative for having the debate. But would love to see a language from the IRS that states the catch up is inclusive of the 415 limits.

Print the post  


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!
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.
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.