Dustin, who is 48 years old, works for Pinnacle Inc., with a salary of $300,000, a car allowance, and a very niceexpense account. Pinnacle is a Fortune 1,000 company that sponsors a defined benefit plan that pays 2 percenttimes years of participation times the average of the three final years of compensation. In addition, Pinnaclesponsors a 401(k) / profit sharing plan and contributes 18% of employees salary to the profit sharing plan. Thereis no additional match. If the ADP of the NHCEs is 3%, what is the maximum that Dustin can defer this year(2018)?

Answer rating: 100% (QA)

To calculate the maximum that Dustin can defer this year we need to consider the contribution limits for both the defined benefit plan and the 401k pr... View the full answer