415 limit for employee of multiple employers

[Guest RS Vatalaro]

Based on the research I have done, it appears that an employee ("X") who works for two different employers ("Y" and "Z")and has in excess of $170,000 in comp from each, can get a 30K DC 415 limit twice - once for each plan. So effectively 60K can be funded - 30K into each plan. Y's plan is a 401k plan, I realize if the 401k deferrals are maxed in Y's plan that no deferrals can occur in Z's plan (because the deferral limit is one 10.5K limit from all employers for the employee for the year). The two employers are not a controlled group. Am I correct about the 60K 415 limit aspect?

[Guest JMLSON]

As long as they are not related employers, 415 limits apply without regard to one another. As you stated, the 402(g) limit will apply to ALL deferrals.

[MWeddell]

I agree. However, when you say that the employers are not a controlled group, remember that the common ownership need only be > 50% for 415 purposes, not the usual >= 80% in order to make a controlled group.

[This message has been edited by MWeddell (edited 01-10-2000).]

[John A]

MWeddell's point is valid, but remember that it applies only to parent-subsidiary controlled group determinations.