AlbanyConsultant Posted September 5, 2017 Report Share Posted September 5, 2017 Being not-for-profits, there's no deduction for the employer contribution, so is there a maximum amount allowed? I get that most NFPs don't have tons of leftover cash to make excessive plan contributions, but let's say that this year is an anomaly. Example: NFP has $800,000 payroll. if this were a regular corp, the deduction limit (and therefore the maximum total contribution) would be 25% x $800K = $200K. Is this the same for a NFP? One of those things that I know I've seen before, but just blanking on it. Thanks. Link to comment Share on other sites More sharing options...
Belgarath Posted September 5, 2017 Report Share Posted September 5, 2017 No, but 415 limits for the individual participants still apply. Link to comment Share on other sites More sharing options...
CuseFan Posted September 5, 2017 Report Share Posted September 5, 2017 True, but those limits are the lesser of $54,000 or 100% of pay, so an employer contribution of 35% or 40% of pay would not be out of the question. HOWEVER, tax exempt entities must also pay reasonable (total) compensation and report their officers' total pay on their 990s, so a sizable employer contribution on top of significant pay for a NFP executive might draw attention for excessive compensation. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
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