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Reply to "Not allowed to max 401K"
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[quote=Anonymous]The top heavy rules have been around since the early 80s. The point is to keep retirement plans from being for the exclusive benefit of the high earners at a firm. If it did, the plan would really just be a tax shelter for the most privileged employees. For example, if a law firm offered no match to its 401K so only partners participated. It just requires that you make sure there is a minimal benefit for lower paid employees. You can usually avoid the problem if the business offers a decent matching rate for lower paid employees.[/quote]
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