Corp switches from SEP to PS plan mid-year; have to count contributions under both for "annual additions" testing?

[Guest nipa]

a c-corp has a SEP from 1/1 - 5/31. as of 6/1 changed to a s-corp. wants to have a short plan year (6/1 - 12/31) profit sharing plan. other than having to prorate for the short plan year, should the annual additions limitation include both plans?

[Gary Lesser]

Yes. The PS deduction limit is also reduced by any SEP contributions.