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Most of my clients have been increasing the limit to 50% of pay, specifically in order to hit the 402(g) limit ($12,000 this year) and allow those over 50 to participate in the catch up contributions ($2000 this year). Theroetically, it can now go to 100%, but because of other deductions, it generally isn't wise to do so. You should make sure how your employer calculates the match - if it is on a per-payroll basis, increasing your deferrals above the match amount may cost you matchinbg dollars. Some employers (a growing number, in my un-scientific impression) are matching on the basis of annualized comp and will make you whole, or make a "true-up" match at the end of the year, so this is not a worry (except as to timing of investment).
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