Multiple DB plans

[retbenser]

I have a one participant.

He has a DB plan from his consulting work (Sch C and K-1 income). He joined a sole-proprietor and participate in its DB plan (W-2).

Is there any problem here with 2 DB plans? 415? 404 deductible?

Thanks.

[Andy the Actuary]

If he went to work for another party and has no actual or attributed ownership, then should be no different than if client took a job with GM, albeit his position with the SP is likely more secure. Further, client's DB plan is business as usual if plan is not terminated so may have to make contributions with after-tax dollars if client's not generating K1 or Schedule C.

[retbenser]

If he went to work for another party and has no actual or attributed ownership, then should be no different than if client took a job with GM, albeit his position with the SP is likely more secure. Further, client's DB plan is business as usual if plan is not terminated so may have to make contributions with after-tax dollars if client's not generating K1 or Schedule C.

So is that a Yes or a No?

[Andy the Actuary]

Sorry. Could work for 10 unrelated employers and get maximum DB pension from each. DB and most DC limits apply in aggregate only when there is some ownership relationship among the sponsoring employers. This is not a universal. For example, the 401(k) limit on deferrals applies to the individual so cannot defer beyond the $16,500 (and $5,500) via coverage under multiple 401(k) plans of unrelated employers.

[retbenser]

Sorry. Could work for 10 unrelated employers and get maximum DB pension from each. DB and most DC limits apply in aggregate only when there is some ownership relationship among the sponsoring employers. This is not a universal. For example, the 401(k) limit on deferrals applies to the individual so cannot defer beyond the $16,500 (and $5,500) via coverage under multiple 401(k) plans of unrelated employers.

Muchas gracias.