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From what I understand, Uncle Sam sets the dollar limits and different companies may set percentage limits as they like.

Sorta. The laws that created 401k plans were designed to make sure that companies don't just set them up for the benefit of highly paid employees. So the plan gets closed if a certain percentage of "regular" employees don't participate. (I think it's that the percentage of highly compensated employees who participate can't exceed the percentage of regular employees or not by too much.)

That's why companies have matching plans, to make sure that many people "ordinary" participate. DH has always worked at companies with really savvy people, so his company offers no matching.

- Megan



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