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What is the maximum an Employer can contribute on the behalf of its employees in a given year?

April 26, 2017behalf contribute employees employer given maximum year

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What is the maximum an Employer can contribute on the behalf of its employees in a given year?

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Employer contributions are limited by the total participating compensation and testing requirements for the employee and Plan levels. Generally, the total contribution for an individual employee would be limited to the lesser of 25% of recognized compensation or $44,000 for the year 2006. On the Plan level, the total employer contributions is limited to 25% of total participating compensation.