I have a client whose owner is also 100% owner of another company. Both companies maintain their own plans and both just converted to a safe harbor for 2015. The owner has compensation at both companies but only defers to the plan I do not administer. His compensation at each company is below the limit for 2015 but combined is over the limit. Obviously he does not receive a 3% safe harbor contribution from each employer because that would put him at over 3% of the annual compensation limit. The client is hoping that the plan he defers in can just give him the full 3% of $265,000 since it is a controlled group. I've researched but I can't find anything regarding this situation. Does he need to get something in each plan or is doing it all in one plan permitted? Thanks!
