Combined DB/DC Deductible contribution

[retbenser]

The combined limit 404(a)(70 limit does not apply if NO employee is a beneficiary in both DB and DC plans.

I have a DB plan and a 401(k)/Profit Sharing plan -- all HCEs (i.e. no NHCE in plan).

Does the combined limit apply if I have one employee in the DB and the 401(k) deferral, but NOT the PSP and Match?

Does the combined limit apply if I have one employee in the DB and the 401(k) Deferral and Match, but NOT the PSP?

Thanks for any advice.

[John Feldt ERPA CPC QPA]

"Does the combined limit apply if I have one employee in the DB and the 401(k) deferral, but NOT the PSP and Match?"

No. 404(a)(7)©Paragraph not to apply in certain cases:

...404(a)(7)©(ii)Elective deferrals. If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.

"Does the combined limit apply if I have one employee in the DB and the 401(k) Deferral and Match, but NOT the PSP?"

Yes, but maybe no. If the total employer contribution for the PSP/Match does not exceed 6% of eligible compensation, then 404(a)(7) does not apply:

404(a)(7)©(iii)Limitation. In the case of employer contributions to 1 or more defined contribution plans

404(a)(7)©(iii)(I) if such contributions do not exceed 6 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under such plans, this paragraph shall not apply to such contributions or to employer contributions to the defined benefit plans to which this paragraph would otherwise apply by reason of contributions to the defined contribution plans, ...

[retbenser]

"Does the combined limit apply if I have one employee in the DB and the 401(k) deferral, but NOT the PSP and Match?"

No. 404(a)(7)©Paragraph not to apply in certain cases:

...404(a)(7)©(ii)Elective deferrals. If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.

"Does the combined limit apply if I have one employee in the DB and the 401(k) Deferral and Match, but NOT the PSP?"

Yes, but maybe no. If the total employer contribution for the PSP/Match does not exceed 6% of eligible compensation, then 404(a)(7) does not apply:

404(a)(7)©(iii)Limitation. In the case of employer contributions to 1 or more defined contribution plans

404(a)(7)©(iii)(I) if such contributions do not exceed 6 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under such plans, this paragraph shall not apply to such contributions or to employer contributions to the defined benefit plans to which this paragraph would otherwise apply by reason of contributions to the defined contribution plans, ...

Thank!