Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hi! I'm a first-time poster. Hope this isn't too long winded! I've also posted this to the "Ask A Foolish Question" board but no response so far. Any & all responses are appreciated as are suggestions for other sources of information.

Background: I'm a 10% shareholder in a small company of 15 employees. We have a 401(k) plan where owners and non-owners participate and the maximum annual contribution a person can choose to make is $10,500 or 15% of their gross (whichever is less).

Question 1: I want to contribute 15% of my salary to my 401(k) account. The average "non-owner" participant is contributing 7%. Am I limited to a 7% annual contribution, or can I go for 15%?

Question 2: Are profit-sharing distributions also confined to this 7% limit, or can I use those to max out my annual 401(k) contribution?

Thanks in advance for you help!
Print the post  


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.