max contribution allocation

[Guest tbt]

Have a 401k where nhce defered 15 %, & employer made a psp contribution of 5 %. I took the total elligible comp minus defs & multiplied by 15 % to get max deductible contribution, which we are under: but question is can nhce employees get a 20 % allocation (15 % def 5 % psp) for 2001. Thanx!

[austin3515]

That doesn't exceed any limits I've ever heard of.

Annual additions limitation (IRC 415) is 25%. You're only at 20 (pre EGTRRA this included the 15% of deferrals - post EGTRRA you're only at 5%).

Plan docs commonly limit deferrals to 15% of comp (again, pre EGTRRA), so that shouldn't pose any problems. And because they're an NHCE, they would likely not have exceeded the 402(g) limits (10,500) (If they earned more than 70K, they would have deferred more than 10,500 in your scenario.