Split DB/DC plan

[dmb]

I have a client that fits the split DB/DC criteria. Young and Old Owners, and a similar mix of employees. They currently have a 401k plan. Can the DB participants continue to defer in the 401k (without getting a PS contribution) without the plans being subject to the combined plan 404 limits?? Thanks.

[Blinky the 3-eyed Fish]

I know the 404(a)(7) limits are disregarded if there is a DB plan and a 401(k) only plan. I know there was some debate as to whether the 401(k) plan can hold existing dollars from other than 401(k) sources. Technically a person in the DB plan with profit sharing dollars in the DC plan and be a participant for this purpsoe in both plans.

That being said, I would tend to believe that your situation would push the envelope further and bring the 404(a)(7) limits into play.