Non-qualified and 401(k)

[Guest KMP]

I have a participant in a non-qualified plan with pre-tax deferrals and a 401(k) plan sponsored by a different employer? I read that a participant in both plans can contribute the 402(g) limit in the 401(k) plan and contribute the maximum amount in the 457 plan. Is that still the case?

Does the non-qualified plan in any way affect his 415 limit on the 401(k) plan?

[Guest mjb]

Contributions to the 457 plan are not aggregated with the contributions to the 401k plan. Employee can defer 15k to the 457 plan and 15k to 401k plan in 2006. It doesnt matter if the plans are maintained by the same employer or separate employers. However, the employee has one limit for all 457 plans that he participates in and one limit for all 401k plan that he participates in. Contributions to a 457 plan are not included in the 415 limit.

[Guest KMP]

Thank you!

[davef]

This may or may not apply to this person's situation, but you may need to also think about the defintion of Compensation under the 401(k) plan and for 415 purposes. If you are adding back in pre-tax contributions, you won't be able to include the 457(b) contributions, since those are through a different employer.