404 Deduction

[steve45]

Total compensation for all eligible participants = $950,000

Then, 25% of total compensation = $237,500. 
Which sources will be counted for this deduction? (Profit sharing, Safe Harbor, Match.. which sources are to be count

 

Thanks in advance.

[C. B. Zeller]

$237,500 is the maximum that the employer can take as a deduction for all plan contributions (other than elective deferrals). All employer sources count. If the employer is carrying forward an undeducted contribution from a prior year, that reduces the deduction limit for the current year.

[steve45]

Thanks a lot.