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Posted on 4/5/14 at 6:46 pm to TheIndulger
quote:
I don't get it. So even though the limit to contribute is 17,500, they only let you put in 14,500?
401(k) plans have to undergo testing. Without getting too inside baseball, if the percentage of salary put in by "highly compensated employees" is much higher than the percentage of salary put in by everyone else, then the limit for the highly compensated employees is drug down.
There's a way around this. You can skip testing if the company puts in a minimum amount. There are a couple of options.
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