Does annual compensation limit for 401k only apply to base salary?

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1246720

2026-04-07 01:51

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No, the annual compensation limit for 401(k) contributions does not apply only to base salary. It generally includes all forms of taxable income, such as bonuses, overtime pay, and other types of compensation. However, specific plan rules may vary, so it’s important to check with the plan administrator for precise definitions of eligible compensation.

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