SIMPLE coordination with 401(k) plan of other employer

[Guest Lyn Wyatt]

A privately held corporation has a SIMPLE. One of the employees of the privately held corporation also participates in a 401(k) plan at another employer. Is there a coordination issue on the amount the employee can contribute? What are the limits to consider?

[Gary Lesser]

Although the two plans do not share a 402(g) limit, the individual does. Amounts deferred over the limit ($11,000 or $11,500) must be included on the employees Form 1040. Other than that the two plans/employers stand separately with respect to all limits since (assuming) the entities are not controlled or related to each other.