Bruddah Kimo Posted October 25, 2007 Posted October 25, 2007 A Sole-P, over age 50, maintained a SEP-IRA to which he made a $6800 contribution in 2007. Later in 2007 he joined a 401k sponsored by an LLP (he is a partner) and made a employee 401k contribution of $20,500. Is this allowable or is he considered in excess of the limit? Mahalo!
Gary Lesser Posted November 7, 2007 Posted November 7, 2007 The $20,500 limit is an elective limit that applies on a plan and on an individual basis. Assuming all individual plan limits were met, the employer's $6,800 should not be a problem (assuming it is not an elective contribution). If the owner is in control of the LLP (more than 50%), then aggregate limits would apply if employer contributions were made to both plans (the $45k/100% limits). OTOH, if the employers are related, affiliated, or controlled, then there would be other issues. "Mahalo" to you too! Hope this helps.
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