Brian Gallagher Posted June 11, 2003 Posted June 11, 2003 I believe under 404(a), the maximum a company can deduct is 25% of covered compensation. What would happen if everyone who was eligible was putting away 30% of their comp? (far-fetched I know, but stuff like this keeps me up at nite) I am also under the assumption that non-deductable contribs (ie over 25% of covered comp)are not allowed. I'm probably wrong somewhere, I'm just wondering where. Does the company just deduct the 25% and ignotre the additional 5%? Remember: two wrongs don't make a right, but three rights make a left.
R. Butler Posted June 11, 2003 Posted June 11, 2003 After EGTRRA deferrals are deducted separately and are not applied to the 25% limit.
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