Yes, the 2% would be on $350K total and limited to $7,000. Absent any specific language in either or both plans on how to adjust, I would say prorate, so $175K comp in each plan and a$3,500 contribution.
The first thing that comes to mind are the SPD and SMM. ERISA does not require that these disclosures must be made in languages other that English, but DOL 2520.102-2(c) does have the rules that do.