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Posted

But be aware that it is highly likely that the employer contribution to the K plan must be 6% or less of net compensation or else the plan sponsor will run afoul of 404(a)(7).

Posted

Exactly - we do these all the time: deferrals, catch-up if eligible, 6% PS (be careful to use correct "compensation") and max CB. And if they have the income to support  it, do some voluntary after-tax up to the DC 415 limit and then in-plan conversion to Roth.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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