EE for a company.. and SE for himself. Can he defer $12K in both plans?

[K-t-F]

I have a client that is an employee in a company and he defers the max in the 401K there. He also works for himself and wants to defer another $12K... Possible?

[WDIK]

The 402(g) limit is an individual limit.

[Alf]

Nope. $12,000 per year total.

[K-t-F]

Thank you!

[mbozek]

yes- if he has at least 60k in net earnings from self employment he could make a contribution of 12k to a SEP or HR-10 plan. Deduction is 20% of net earnings from SE. He cant make a contribution with pre tax dollars to another 401(k) plan in excess of 12k if he is not age 50.

[E as in ERISA]

I.e., the $12,000 only applies to those amounts that considered pretax employee contributions -- he can make an employer contribution with respect to the self-employment income and it doesn't have to be subject to the 402(g) limit.