Maximum Deductible Contribution
Definition of "Maximum deductible contribution"
Limit allowed by law on employee salary reduction plans. Many pension plans, as well as the popular 401 (k) plan, allow employees to set aside pre-tax dollars in a company-sponsored retirement account, often matched by a company contribution. But the amount contributed by the employee is regulated by law. For example, the maximum annual contribution for the 401 (k) plan, which was $30,000 per year in 1986, was reduced to $7000 by the TAX REFORM ACT OF 1986.
Popular Insurance Terms
Same as term Limitations: exceptions and limitations of coverage; that is, the maximum amount of insurance coverage available under a policy. ...
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Top state regulator of the insurance business who is either elected to office or appointed by a state to safeguard the interests of policyowners. ...
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