Cross tested Calc

[Pammie57]

There has been some discussion in my office about how individual contribution amounts should be limited under a cross tested plan PS allocation. 

The primary question - If the Profit Sharing Contribution in total does not exceed 25% of TOTAL eligible compensation - can an individual participant received more than 25% of their individual compensation?

I always thought no, but if I am wrong - I'd be ok with that!!..

I would appreciate feedback please.  Thanks!

[Bird]

Quote

If the Profit Sharing Contribution in total does not exceed 25% of TOTAL eligible compensation - can an individual participant received more than 25% of their individual compensation?

Definitely yes.

[Tom Poje]

if you have accidently used my way-back machine and are now pre-2002 then you are correct. 

If you see Sherman, tell him to come home, his dinner is getting cold. (I thank Tom for letting me use his log-in)

[CuseFan]

25% of eligible payroll is plan limit (IRC 404), lesser of 100% of eligible pay or $53,000 (2016) is individual limit (IRC 415).

[CuseFan]

love the Peabody & (pet boy) Sherman refernce Tom!