The 404 Notification With Tax Return presented on this page is a reusable formal template prepared by expert attorneys in accordance with federal and regional regulations.
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26 U.S. Code § 404 - Deduction for contributions of an employer to an employees' trust or annuity plan and compensation under a deferred-payment plan.
The deduction is limited to 25 percent of compensation, counting compensation for a beneficiary under either or all plans. This is applied after excluding DC amounts not exceeding six percent of compensation, counting only compensation for DC beneficiaries.
Begin with the Basics: The IRC §404 Combined Deduction Limit The amount of employer contributions to DC plans that can be deducted each year, ing to IRC Section 404(a)(3), is 25% of the compensation of the plan participants.
IRC SECTION 404 - MAXIMUM CONTRIBUTION LIMIT: The deduction limit for the total cash and stock contributions to all qualified profit sharing and stock bonus plans of the employer is limited to 25% of covered compensation.