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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?

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