Sully Posted September 10, 2004 Posted September 10, 2004 Assume the following fact pattern: Single participant 401(k) Plan for 2003. Participant is over age 50. Employee’s compensation = $16,000 Employee’s 401(k) contribution = $14,000 Employer’s profit sharing contribution = $4,000 (16,000 x 25%) Total allocation for this employee = $18,000 Is this possible? The regs say you exclude the catch-up contribution for 415 purposes so it appears to be okay. Am I missing something? Thank you in advance.
Brian Gallagher Posted September 10, 2004 Posted September 10, 2004 What does the document say is the maximum percentage allowed for salary deferrals? Remember: two wrongs don't make a right, but three rights make a left.
Sully Posted September 10, 2004 Author Posted September 10, 2004 Maximum percentage allowed on salary deferrals is 100% (ignoring the FICA issue).
Blinky the 3-eyed Fish Posted September 10, 2004 Posted September 10, 2004 This allocation does not violate the 415 limits. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
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