Company
Profit Sharing Contributions
| 2003 |
0 to 25% of $200,000 max. compensation with a contribution limit of $40,000 from all sources (deferral, match, P.S.) except age 50 catch-up which can be in addition to the rule. |
|
| $100,000 Compensation Example |
|
$200,000 Compensation Example |
Under
$40,000 Limit
Profit Sharing @ 25%
PLUS Salary
Deferral
Total
all Sources
PLUS
Age 50
catch up
Total |
$ 25,000
+
12,000
$ 37,000
+ 2,000
$ 39,000 |
|
At
$40,000 Limit
Salary Deferral
Reduced Profit Sharing
Total All Sources
Plus Age 50 catch up
Total |
$ 12,000
_28,000 (restricted
if at $40k limit)
$ 40,000
_ 2,000
(employee
salary deferral)
$ 42,000 |
|
| 2004 |
0 to 25% of
$205,000 max. compensation with a contribution limit of
$41,000 from all sources (deferral, match, P.S.) except age 50 catch-up which can be in addition to the rule. |
|
| $100,000 Compensation Example |
|
$205,000 Compensation Example |
Under
$41,000 Limit
Profit Sharing @ 25%
PLUS Salary
Deferral
Total all Sources
PLUS Age 50 catch up
Total |
$ 25,000
+
13,000
$ 38,000
+ 3,000
$ 41,000
|
|
At
$41,000 Limit
Salary Deferral
Reduced Profit Sharing
Total
all Sources
PLUS Age 50 catch up
Total |
$ 13,000
28,000(restricted
if at $40k limit)
$ 41,000
3,000
$ 44,000 |
|
| |
|
| 1. |
Profit Sharing contribution percentages increased from 15% to 25 % of compensation beginning in
2002. |
| 2. |
This now gives the Profit Sharing Plan the same contribution maximum ($41,000 in 2003) as the Money Purchase Plan so the Money Purchase Plan is no longer needed. |
| 3. |
Salary deferral contributions no longer reduce company P.S. contribution if $41,000 limit is not exceeded. |
|
|
|
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