My company only allows me to put 2% into my 401k. They have no match so I have idea why they limit the contributions.
Hello James, Unfortunately for you, it is up to the company's discretion as to what percent they allow their employees to contribute to a 401k. They may have a sound reason for their decision (i.e. You are a highly compensated employee and the plan is top heavy) or may simply have been given bad information. Either way, they are violating no law. However, I can imagine your frustration and it may make sense to sit down with HR or the CEO (if the company is smaller) and see if you can get to the bottom of things.
Hi James, Under no circumstances 401k plans should limit participants for elective deferrals. Such plan should abide by ERISA (404c) and shall not assign limitations. If what you say is true then such plan should be looked for misguidance from TPA record keeper and plan formation clauses. Limitation in contribution are set by IRS and not the employer. For 2016 your allowed pre tax contribution are $18.000 respectively and $5000 for catch up contribution (age 50 or older). You can call my office and we can look at this together and determine what options you may have. 239-676-2320 Good Luck!