Cash over Cap
The 2015 IRS compensation limit is $265000. Currently Max B fund is 7% of the compensation limit ($18550). A salary of $300000 receives the same. The TA raises the percentage but the IRS compensation limit 401(a)(17) still limits the payout. The 2016 limit hopefully will be $270000 so 8% yields $21600. The max amount increases but it's not a true 7/8 percent of salary...never has been.