401(k) Profit Sharing Plan Rules

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on January 30, 2024

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A profit-sharing 401(k) plan lets employers put aside a portion of their profits each year to contribute to employee's 401(k)s.

This lets them exceed the employer match limit, but they are also allowed to contribute less.

For 2024, they can contribute a maximum of $69,000 ($76,500 if an employee is over age 50) or 100% of the employee's salary, whichever is lower.

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401(k) Profit Sharing Plan Rules FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

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