Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
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.