Age
40
45
50
55
60
Max. Annual Tax defer Contribution $33,000
$52,000
$78,000
$93,000
$125,000
| A money purchase plan is similar to a profit sharing plan in that the employer makes contributions for each eligible employee. Its unique feature is that the plan permits contributions as high as 25% of pay, up to $30,000. In exchange for the high contribution limit, the contribution formula is fixed from year to year and cannot easily be changed. Money purchase plans are commonly used by businesses that need the maximum contribution limit and have predictable cash flows and profitability. . Info request |
