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UPS/TEAMSTERS 401K any good?
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<blockquote data-quote="Catatonic" data-source="post: 615050" data-attributes="member: 7966"><p>Actually, it is a IRS rule that is applied and the 401k administrator does not know what the limit is until all 401k contributions have been made for a given year. Therefore, the max amount allowed by law can be taken out ($16,500 for 2009) but the adjusted max can not be figured until all contributors can be added up. If most contributors put away more, there would be no problem.</p><p>Rule: For a highly-compensated employee, the total of your elective deferrals and contributions made for you by your employer under a section 401k plan or SARSEP can be no more than 125% of the average deferral percentage (ADP) of all eligible non-highly compensated employees in a calendar year.</p><p></p><p>Also, I believe this limit is only imposed on persons making $75,000 per year or more. So most full-time management and many full-time union employees could be subject to this limitation.</p><p></p><p>The limit is imposed because other people don't contribute enough - Socialism at it's finest ... pull down the able people to the less able people's level. <img src="/community/styles/default/xenforo/smilies/FeltTip/wink.png" class="smilie" loading="lazy" alt=":wink2:" title="Wink :wink2:" data-shortname=":wink2:" /></p><p></p><p>Maybe if I get lucky and there is no MIP, I will not be subject to this limit. <img src="/community/styles/default/xenforo/smilies/FeltTip/biting.png" class="smilie" loading="lazy" alt=":biting:" title="Biting :biting:" data-shortname=":biting:" /></p></blockquote><p></p>
[QUOTE="Catatonic, post: 615050, member: 7966"] Actually, it is a IRS rule that is applied and the 401k administrator does not know what the limit is until all 401k contributions have been made for a given year. Therefore, the max amount allowed by law can be taken out ($16,500 for 2009) but the adjusted max can not be figured until all contributors can be added up. If most contributors put away more, there would be no problem. Rule: For a highly-compensated employee, the total of your elective deferrals and contributions made for you by your employer under a section 401k plan or SARSEP can be no more than 125% of the average deferral percentage (ADP) of all eligible non-highly compensated employees in a calendar year. Also, I believe this limit is only imposed on persons making $75,000 per year or more. So most full-time management and many full-time union employees could be subject to this limitation. The limit is imposed because other people don't contribute enough - Socialism at it's finest ... pull down the able people to the less able people's level. :wink2: Maybe if I get lucky and there is no MIP, I will not be subject to this limit. :biting: [/QUOTE]
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