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Can my employer limit my maximum 401k contribution amount (below the IRS limit)?
Companies are required BY THE IRS to try to get everybody to contribute minimal amounts to the 401K's.  In the past, there were abuses and only the execs could contribute and the low paid workers were starving while the execs contributed huge amounts.   On a year-by-year basis, if the low-paid employees don't contribute, the IRS punishes the high paid employees.  Therefore, most employers provide a matching program to incentivize low-paid employees to contribute. This 9% limitation could happen in any year and it could have happened even before you got your pay raise, what matters is what the low-paid employees were doing at your company LAST YEAR.