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justin · 01-12-2006, 08:33 AM

My understanding is that plan sponsors (your company) can set an upper limit that is lower than the $15000/yr that the IRS sets. For example, my wife's employer has set an upper limit of 20% of total compensation, so that she can't have more than 20% taken out of any one paycheck. If you earned $75,000 or more, then you could still make the $15000 annual contribution max.

01-12-2006, 08:33 AM	#4
justin Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 4,009	My understanding is that plan sponsors (your company) can set an upper limit that is lower than the $15000/yr that the IRS sets. For example, my wife's employer has set an upper limit of 20% of total compensation, so that she can't have more than 20% taken out of any one paycheck. If you earned $75,000 or more, then you could still make the $15000 annual contribution max.