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simple max when ee works for two unrelated ers


Guest Terryjohn316
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Guest Terryjohn316

If an employee works for two unrelated employers and they both have simple plans, is the limit 6500 overall? I know simple plus 401k <=10500, but how about two simples. Logic says 6500 no matter hom many simple plans ee participates in. Vanguard told a potential client the ee (partial owner in both companies) could do up to 10500.

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Vanguard is right. The 402(g) limit applies, i.e. the individual can defer up to $10,500 between the two plans. This rule applies across the board for 401(k), SARSEPS and SIMPLEs. This means that if this individual participated in a SIMPLE and a 401(k), the limit would also be $10,500.

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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