ejohnke Posted November 27, 2024 Posted November 27, 2024 Are there any regulations limiting the amount of compensation used in a fixed match formula? We have a client wanting to do a match of 100% on the first 6% of deferrals, then 50% on the next 2% of deferrals. Thus allowing for a 7% match on 8% of compensation.
John Feldt ERPA CPC QPA Posted November 27, 2024 Posted November 27, 2024 Under IRC section 401(a)(17), compensation is limited for qualified plans. For a calendar year 2024 plan, that limit is $345,000. For 2025 it will be $350,000. Gina Alsdorf 1
ejohnke Posted November 27, 2024 Author Posted November 27, 2024 No additional limit like the 6% for Safe Harbor Match, correct?
Gina Alsdorf Posted November 29, 2024 Posted November 29, 2024 Correct, but you will still need to test.
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