408(p) and 402(g)

[Guest HNT]

A participant defers the full $10k allowed under 408(p) to a Simple 401(k) and then changes employers mid-year. The new employer hosts a traditional 401(k) plan. Is the participant's 402(g) limit reduced by the $10k deferred to the Simple 401(k) earlier in the year or can he defer an additional $14,000?

[R. Butler]

Reduce by the $10,000.

The 402(g) limit is $14,000 & all plans in which the individual participates are aggregated.