1. For 2014, the maximum amount of compensation that can be recognized for retirement plan purposes is $260,000.
2. For 2014, the maximum amount that can be allocated to a participant's account, including 401(k) salary deferrals, is limited to the lesser of 100% of compensation or
$52,000; or, if the participant is eligible to make the $5,500 401(k) catch up contribution, $57,500. (Catch-up contributions are in addition to the regular $52,000 maximum allocation.)
3. Proposed cash balance plan pay credits:
Owners - 20% of salary
Employee 4 - 0% of salary
Other staff - Generally 1% of salary; however, to satisy IRS non-discrimination requirements, staff employees may receive additional age-weighted pay credits.
Cross tested 401(k) Profit Sharing Plan plus Cash Balance Plan - Contributions for 2014