Moe Howard Posted January 25, 2007 Posted January 25, 2007 The 2006 compensation cap is $220,000 for a PSP and a 401(k) Plan elective deferrals. For a Simple-IRA the compensation cap is $unlimited. What about a Simple-401(k) .... is the 2006 comp cap $220K or $unlimited ?
Gary Lesser Posted January 25, 2007 Posted January 25, 2007 Moe, The compensation cap does apply to the 2 percent nonelective contribution in a SIMPLE-IRA (but not matching). It also applies to a 401(k) SIMPLE for both matching and nonelective contribution purposes.
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