Question: If the small (group) employer elects to make a defined benefit contribution for each employee could this not cause an older and lower compensated employee to have to contribute more than 9.5% of his income to cover his family? Would the employer have to make different contributions based on each employee age and income?
Answer: Yes, an employer can make different contribution amounts for different ages of employees. You can also make different contributions for different classes of employees, for example: hourly and salaried, management and non-management, and length of service.
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