Originally Posted by
nitefr8dog
I am not sure if it is an IRS limit (19.5k) or negotiated limit...but it is a limit based on ABX payroll and my tax return of 7.5% employer contribution of gross.
The contribution and matching amounts are based on a "plan-by-plan" or company-by-company basis. Depending on whether or not you are a Highly Compensated Employee ($120K), you may not be able to max out your contributions. The tax code governing 401k plans was written to prevent qualified retirement plans from overly favoring Highly Compensated Employees. A series of non-discrimination tests were devised to measure whether a plan's design or operation lends to favoring the HCEs over the Non-Highly Compensated Employees.