Ken Davis Posted April 7, 2011 Report Share Posted April 7, 2011 Is a money purchase plan maintained by a governmental entity subject to the 25% deduction limit under 404(a)(3)(A), even though the governmental entity needs no tax deduction? Thanks, Ken Davis Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted April 7, 2011 Report Share Posted April 7, 2011 No, it is not. It is only subject to the 415 limit. Remember though, the formula must be written in the plan since it is subject to required funding, but you may have a formula that states 50% of Compensation for argument sake. Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
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