UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76088  
Subject: Re: 401K contrib limit? Date: 12/3/1998 1:35 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Peppermintpatty wrote:

<<EmployEE maximum contribution is 15% of pay, or $10,000/year, whichever is less. >>

I hope that was a typo because it's incorrect. The maximum is the lesser of 25% -- not 15% -- of gross pay or $10K. The 25% is reduced by whatever the employer puts in. If the employer contributes 5%, then the participant can only put in the lesser of 20% of gross pay or $10K. To further compound matters, in combination the employER and the employEE together may contribute a maximum of the lesser of 25% of gross pay or $30K. And that doesn't even begin to get into the discrimination testing rules to which you alluded. Ain't the ins and outs of defined contribution plans fun?

Regards….Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Wal-Mart Nixes Apple Pay
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement