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SteveR · 01-12-2006, 08:46 AM

I read somewhere in our plan that there was a limit for the "highly" paid workers due to an IRS requirement that related to the percentage of contributions from these "highly" paid workers with respect to the less highly paid ones. There is a calculation that a company has to make each year to demonstrate they are not violating this rule to keep the IRA advantages to the 401k plan. I know we are restricted to a maximum percent of income we can contribute pre-tax and post tax but my wife has no such limit. I am sure there is an IRS document on this but I don't have the time to look it up.

01-12-2006, 08:46 AM	#6
SteveR Moderator Emeritus Join Date: Jul 2005 Posts: 2,674	I read somewhere in our plan that there was a limit for the "highly" paid workers due to an IRS requirement that related to the percentage of contributions from these "highly" paid workers with respect to the less highly paid ones. There is a calculation that a company has to make each year to demonstrate they are not violating this rule to keep the IRA advantages to the 401k plan. I know we are restricted to a maximum percent of income we can contribute pre-tax and post tax but my wife has no such limit. I am sure there is an IRS document on this but I don't have the time to look it up. __________________ Work? I don't have time to work....I'm retired.