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Service-weighted plan question


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Posted

I have a PS Plan which had 3 groups for contributions:

25+ YS = 15% of comp

15-25 YS = 10.5% of comp

<15 YS = 5% of comp

Under EGTRRA, these amounts can go up (presumably the top group, including the owner, can now deduct 25%).

If the top group now is 25%, what must the other ones be?

Posted

This must be general tested to see what will pass. You will get a different answer depending on what the plan population is.

Why do you think you can only go up to 25%? You can have 100%. The plan contribution in total is limited to 25% of aggregate compensation. Individuals are not limited to this.

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