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Is the maximum limit for a non-profit's employees 25% as opposed to us


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Guest victor
Posted

Is the maximum contribution limit for employees of a non-profit with a 401(k) 25% as opposed to the traditional 15%?

Posted

Yes. Think of it this way. The 15% DEDUCTION limit is under 404. Not for profits do not take deductions. THe same applies to the 25% MPPP or combo plan limit under 404.

The limit is the 25% annual additions under 415, which INCLUDES deferrals in the definition of pay. 404 currently EXCLUDES deferrals it its definition of pay.

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