Moe Howard
Jan 25 2007, 10:00 AM
The 2006 compensation cap is $220,000 for a PSP and a 401(k) Plan elective deferrals.
For a Simple-IRA the compensation cap is $unlimited.
What about a Simple-401(k) .... is the 2006 comp cap $220K or $unlimited ?
Gary Lesser
Jan 25 2007, 10:32 AM
Moe,
The compensation cap does apply to the 2 percent nonelective contribution in a SIMPLE-IRA (but not matching). It also applies to a 401(k) SIMPLE for both matching and nonelective contribution purposes.