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Author: coates Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25616  
Subject: Re: Companies Restricting Pre-Tax Contributions Date: 1/2/1999 4:49 AM
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The pre-tax contributions are sometimes limited percentage-wise by employers. The IRS limits that are imposed are $10,000.00 pre-tax, or 25% of gross compensation or $30,000.00. Included in the 25% or $30,000.00 category are pre-tax contributions + employer contributions + pension/retirement contributions + company stock or any other Monies contributed on behalf of the employee retirement. The problem for non Highly Compensated Employees is that companies come to an area and ask for huge tax abatements and all kinds of other perks from local, state and federal governments, and no matter how eco- conscious they are they place some sort of burden on the environment, either by air and water discharges, increased materials to land fills, traffic etc. At the same time by limiting Non Highly Compensated Employee Compensation to 401K Plans they are potentially leaving communities with retirees ill prepared to deal with retirement, potentially further burdening governments with subsidizing retirement of their employees. I would like to see Congress pass a law that prohibits companies from limiting IRS provisions.
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