Suppose the following:
A 401(k) safe harbor retirement plan covers two related companies - Company A and Company B. Employee has ownership in both Company A and Company B.
Employee has wages of $30,000 in Company A and defers the maximum pre-tax deferral to the retirement plan. Company A matches those wages up to 4% for a match of $1,200 ($30,000 x 4%).
Employee also has wages of $100,000 in Company B. No employee deferrals here since those were already maxed in Company A.
Do the wages get aggregated since the Companies operate one plan such that the wages in Company B should also be matched? Does Company B owe a match to Employee of $100,000 x 4% = $4,000?
A reference to authoritative literature on this would be helpful. I have searched with different terminology but have not found what I need. Thanks.
