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SEP and a 401k


Tom Poje
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individual has his own 401k plan for his company. only employee.

he is in a SEP, total unrelated company, no ownership.

he receives the maximum in the plan (e.g. 51,000)

as I recall, annual additions are separate for unrelated companies, so he could still put in a contribution for himself in the 401k, but my brain is on a freeze, so just want to verify.

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You are correct! The only time something similar would become an issue is when the individual is in a 403(b). Then you could have two plans of 'unrelated' employers combined for 415; because of the special 403(b) rule assigning the annual addition to the individual participant.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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