2025 ELECTING LARGE EMPLOYER – EXAMPLE (1 of 2)
01.Core Concepts
• The regular contribution maximum is $16,500 for 2025. • In 2025, GazingGlobe Co. is an electing large employer. • The $16,500 maximum is increased to $17,600. • In addition, the employer match is increased from 3% to 4%. • GazingGlobe Co. elects to offer a 10% additional nonelective employer contribution. • Capped at the lesser of 10% of the covered compensation amount • ($350,000 for this example) or $5,100 in 2025. • Olivia (age 46), an employee of GazingGlobe, earns $600,000. • If Olivia chooses to maximize her contribution, what is the total contribution for Olivia in 2025?