415(k)(4) limitation

[lexi]

We have a plan that is converting from a DB plan to a DC plan. The 403(b) TSA is going to be controlled by the employer. IRC section 415(k)(4) says that the 415 limitation applies with respect to plans controlled by the employee, which is NOT the case here. Does that mean we can avoid the 415(k)(4) limitation or is that an overly cute reading of the Code?

[Guest mjb]

k4 says that the employee is deemed to be "in control" of the 403b contract for the purpose of aggregating contributions under 414b or c. Since the NP employer controls a Q plan, the 403b plan is not aggregated with the Q DC plan for the 415 limits becasue the employee, not the employer is deemed to be in control of the 403b plan. However, the 403b plan must be aggegated with any other 403b contracts of the employee with NP employers or with a Q plan in which the employee owns more than 50% of the interest in the employer,e.g., HR-10, 401k or SEP plan. If the employee works for 3 unaffiliated NP he has a max contribution limit of $44,000/49,000 for all 3 plans. If the ee participates in two 403b plans of the same employer he as a single 44/49k limit.

I dont understand how you convert a DB to a DC other than by termination of the DB and rollover to the DC.