415(c) limitation apply to the employer or the person?

[Guest fender5150]

This is probably an easy question, but I haven't run into the issue till now:

A doctor makes $250,000 at his primary job and gets a $46,000 NEC.

He also makes money as an author.

Can he start a solo k and defer another $46,000?

Is the 415 limitation based on the employer? I see there are aggregation rules for multiple plans under a single employer, but what about multiple employers?

Could 3 separate employers - not affiliated with each other at all - each give the guy a $46,000 NEC?

This is probably an easy question for someone, or perhaps everyone but me. : )

Thanks in advance for your feedback!

[J Simmons]

This is probably an easy question, but I haven't run into the issue till now:

A doctor makes $250,000 at his primary job and gets a $46,000 NEC.

He also makes money as an author.

Can he start a solo k and defer another $46,000?

Is the 415 limitation based on the employer? I see there are aggregation rules for multiple plans under a single employer, but what about multiple employers?

Per EE, per ER.

Could 3 separate employers - not affiliated with each other at all - each give the guy a $46,000 NEC?

Yes.

[Guest Sieve]

Be a bit careful, however. For purposes of calculating annual addition limitations, the controlled group rules for parent-sub are reduced from 80-50 to 50-50. (IRC Section 415(h).)

[K2retire]

A doctor makes $250,000 at his primary job and gets a $46,000 NEC.

He also makes money as an author.

Can he start a solo k and defer another $46,000?

The deferral limit is per person at $15,500, not $46,000.

But assuming you didn't really mean deferrals, the NEC as a doctor and the comp as an author are likely to be a controlled group. If so you would only get 2 rather than 3 employers that can go up to the 415 limit.