A One limit does, but probably not the one you’re thinking of. For 2007, you can elect to defer up to $15,500 of salary to a 401(k) plan (plus $5,000 if you’re age 50 or over). This does not include any matching contributions by your employer. Thus, if your employer matches dollar-fordollar, you can salt away up to $31,000 (or $41,000) for 2007. But the IRS also limits the amount that can be contributed from all sources, including matching contributions. For 2007, it’s the lesser of 100 percent of compensation or $45,000.
Tip: Be aware that matching contributions cannot favor highly compensated employees.
- Small Business Tax Deduction Strategies No matches