Contributions to individual employees are limited as follows:
- 401(k) salary deferrals are limited to $18,000 for the 2016 calendar year. For those age 50 or older the limit is $24,000 which includes a $6,000 employee 401(k) catch-up.
- Total contributions (profit sharing, 401(k) deferrals, match, and forfeitures) are limited to the lessor of:
- $53,000 ($59,000 with catch-up) or
- 100% of compensation
|x 100% |
|lesser of % or $ limit ||53,000|
|less 401(k) deferrals ||(18,000)|
|Maximum profit sharing/match/forfeiture allocation ||$35,000|
401(k) Profit Sharing plan limits
Total employer contributions (profit sharing and match) to the plan cannot exceed 25% of total eligible compensation for the employer.
401(k) deferrals are not taken into account for determining the deduction limit.
|Gross compensation* of all eligible employees ||$ 1,000,000|
|less 401(k) deferrals||n/a|
|less cafeteria elective contribution ||n/a |
|Maximum Deductible contribution ||250,000|
|less 401(k) deferrals||n/a |
|Maximum profit sharing/match contribution||$250,000|
* only compensation up to $265,000 for 2016 may be taken into account for any individual employee for retirement plan purposes.
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