Simple plans and annual deferrals. Is there any crossover to 401(k) a

[Guest MartinANDs]

The allowable deferral for Simple plans is

$ 6,0000. Is there any increase to this if an individual works for multiple employers? In otherwords, could one defer up to $10,000 under the 401(k) and 403(B) rules (cumulative for all w-2s)? I have heard both opinions, yes and no.

[Guest mcdonnell]

If an individual participates in more than 1 salary deferral plan with multiple employers then the maximum deferrals to all plans cannot exceed the IRC 402(g) limitations ($10,500 or $13,500 for 403(B)s with catch-up contributions). For example, if $6,000 is deferred to a SIMPLE, then only $4,500 can be deferred to a 401(k) with another employer. See IRS Notice 98-4, C-3.

[This message has been edited by mcdonnell (edited 01-20-2000).]