Guest Don J. Smith Posted April 6, 2001 Share Posted April 6, 2001 What is the maximum a participant can defer from pay. I have a ER that insists 15% to $30K. I am thinking it's 15% to $10,500.00 for plan year end 12/31/2000. There is no ER money in this plan. Link to comment Share on other sites More sharing options...
R. Butler Posted April 6, 2001 Share Posted April 6, 2001 Deferrals to SEP are subject to the $10,500.00 limit. Link to comment Share on other sites More sharing options...
actuarysmith Posted April 12, 2001 Share Posted April 12, 2001 I agree with the last response. The $30,000 limit refers to all annual additions (deferrals, match, and/or profit sharing). This discussion can get complicated and confusing when you are talking to the sole owner of a small business. It is hard for them to distinguish between deferral, match, and profit sharing conceptually because it all comes from the same pocket - theirs! Since frequently the owners paycheck is a function of whatever is left on table after all other expenses and contributions, ALL contributions to a plan, whatever source, are viewed as "salary reduction". Anyway, I hope I didn't muddy this up more than I clarified. I just wanted to share the experience that I have run accross frequently when dealing with owners of small businesses. Choose your words very carefully. Link to comment Share on other sites More sharing options...
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