Originally Posted by
89Pistons
1) LJ Driver, yes, there is a cap on the PRAP. That cap isn't set by our UPA. It's set by the IRS. And that cap for 2025 is 59.5K, not the 46.5 we'd be agreeing to.
Just a clarification, there isn’t a cap on the PRAP per se, it’s on the amount that can be matched by an employer. So different percentages will raise or lower the amount that can be contributed. The only limit on the amount to the PRAP itself is the 415C limit.
It’s an important difference to understand particularly when negotiating.