Jump to content

415 Limit


Guest Laura12345

Recommended Posts

Guest Laura12345

As 402(g) is an individual deferral limit, 415 is whose limit? employer? plan? employee?

Here's why I ask:

We have an employer with a profit sharing plan. Among their eligible employees is a person who owns his own business. In addition to the generous profit sharing contribution he will receive from his employer, this employee/business-owner would like to create for himself a uni 401(k)/mini 401(k) (a one-person, business-owner retirement plan).

He is eligible to receive a hefty profit sharing contribution from his employer. He is aware that he cannot defer in excess of the 402(g) limit for any given year, but is wondering if it is permissible to receive, in combination between his employer's plan and a uni/mini-401(k), in excess of $40,000 in profit sharing contributions (or whatever limit applies for a given year).

I have done some web searches and can't find anything that specifically addresses such a situation.

Thanks for guidance!

Link to comment
Share on other sites

Guest Laura12345

So, to confirm, for example, this person may receive a total of $80,000 between the two separate plans?

Link to comment
Share on other sites

Is there any chance these are not unrelated employers? Does the EE have any ownership (directly or indirectly) in the first employer?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Link to comment
Share on other sites

I have a question regarding 415 limits for employees that participate in a single retirement plan maintained by more then one unrelated employer.

If the employee worked for two employers in this plan would the employee have two 415 limits?

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...