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Yes you can do it. BUT - you may very well contribute/defer more than is allowed, and have part of it refunded back to you early in the following year.

If you can defer $16,000, you must be in the highly-compensated group.

From what I understand, Uncle Sam sets the dollar limits and different companies may set percentage limits as they like. I'm putting $14,000 into my 401(k) this year, which is more than 20% of my salary. My company took away the percentage requirement a while back and anybody can contribute up to the max.

Anyway, next year I turn 50, and the max for me will be $20,000, I think. What I'm wondering is that if it's okay to do that if I'm at the company for less than a full year.

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