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Originally Posted by sailingfun
No idea what your saying. The pensionable portion of profit sharing goes directly into the DC plan without being taxed.
Our maximum employee 401k contribution is $18,000 (or $24,000 for those age 50 and older) per year. Does any amount of profit sharing that one elects contribute to the 401k still count against the $18,000 employee contribution limit, or does it only count against the $53,000 maximum total contribution?
Maximum Employee 401k Contribution Limit
If it still counts against the maximum employee 401k contribution limit, then I would say that it is merely fungible funds, and doesn't make our DC rate better than anyone who has greater than 15% employer contribution. If it only counts against the maximum total contribution, then I just found a way to get closer to $53,000 per year in my 401k.