Unfortunately, mistakes happen all the time. We see many situations where clients overfund their 401ks and SEPs. This usually happens when a cash balance plan or defined benefit plan is combined with a 401k and SEP. Many people don’t realize that there are limitations and restrictions when plans are combined.
About Paul Sundin, CPA
Paul has written articles on retirement planning for Inc., Kiplinger and others. He focuses on cash balance plans and other defined benefit plans. Schedule a FREE 30 minute call with him: