401K Deferrals plus Separate SEP PLan

[rfahey]

I Have a prospect that works for a company that he does not own in any way and he defers $9,000 / year into the 401K plan there.

He also has a business that he owns entirely ( no employees ) that has SEP plan.

Can he contribute the $46,000 limit for 2008 to the SEP plan considering he puts the $9,000 into the 401K plan ?

THanks

[jevd]

My understanding is yes he can as long as there are no control or affiliated service group issues. The 415 limits are on an employer basis. As long as there are no deferrals in the SEP (realizing that if this is a new SEP that's not an issue) then I believe he is ok as long as his Compensation is appropriate.

I haven't worked directly in the QP/employer plan area for some time so others may have more insight.

[Fisher]

I Have a prospect that works for a company that he does not own in any way and he defers $9,000 / year into the 401K plan there.

He also has a business that he owns entirely ( no employees ) that has SEP plan.

Can he contribute the $46,000 limit for 2008 to the SEP plan considering he puts the $9,000 into the 401K plan ?

THanks

Definitely no problem. The SEP would have to be aggregated only if he was deferring into a 403(b) plan with another employer rather than a 401(k)