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One, I'm pretty sure that there's a ceiling on the percentage of income you are permitted to defer.

Is this true? I participate in a 403b to the max (14,000) and I make 46,000 a year. That's approx 30% of my gross income. No match unfortunately.

I was told by my plan administrator that I could contribute the max or my entire net income whichever was less. I've been doing this for 3 years.

When 401(k) plans began, there were maximum percentage contribution limits on each participant as well as absolute dollar maximums and "top-heavy" limits. The participant percentage contribution limit was changed to 100% of qualifying earned compensation some years ago.

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