Originally Posted by
ZapBrannigan
I'm sure I'm missing something, but if you're exceeding the IRS max, the remainder spills back as cash anyway. So why do most of us even care? Is it worth expending negotiating capital on this?
I agree with this.
I suppose everyone has different goals and savings strategies. But if one desires to save as much tax deferred money as possible, the way I figure it anyone who earns less than around $257,000 needs to divert their profit sharing to a qualified account in order to max out the 415c limit. And once it's maxed out, excess just spills over into cash anyway (or, if elected, into a non-qualified plan).
If you put money from a cash bonus plan into your retirement account, is it considered an employer contribution? I think not, but I could be wrong.