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415 Limit for Employee who is participant in 401(k) Plan and wants to

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Client has compensation greater than $200K as non-owner/employee of big corp and defers $10,500 to 401(k) plus a small matching contribution. This person also has consulting business with income of $200K, and wants to set up SEP or perhaps DC or DB Plan. Does he get the full 415 limit for this new Plan, despite participation in the 401(k) Plan?

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Based on your facts, Client can set up a qualified plan and get another 415 limit. The 415 limits apply to controlled groups of companies, but not to unrelated businesses.

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  • 2 months later...

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