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SEP Contribution Limit


Guest Retirement4Life
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Guest Retirement4Life

A person had contributions of $35,000 towards a SEP for part of 2007. They left this employer and started with an employer offering a 403(b). He would like to make elective deferrals to the 403(b) and wants to know how much he can contribute. Is he allowed to defer the full $15,500 for 2007 in if he has the capability and desire to do so, or is he limited to the 415 limit minus prior SEP contribution = $10,000? Someone is telling us that the 45k limit would apply and he could only do 10,000. But that doesn't sound right. These are two different employers. I thought 415 was per plan, not per individual for the year. Please provide a cite for or against if possible. Thanks.

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  • 2 weeks later...

If the SEP participant owned more than 50% of the business that sponsored the SEP he has to aggregate the 403b annuity contributions with the SEP contributons for the 415c limits since he is deemed to be control of the 403b annuity. See IRC 415(k)(4); reg 1.415(f)-1(f)(2).

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