Contribution Deduction for Participating Employer

[Dougsbpc]

A partnership sponsors a DB and a 401k.

The partnership is owned by two corporations. Each own 50% of the partnership.

Each corporation has one employee (the owner of each corporation). They are related employers so each corporation adopted the plans as participating employers.

Each corporation (as a participating employer) deducts the contributions that are funded for its employees (just the owners of those corporations).

The participating employer section of the DB is somewhat ambiguous on contributions. However, it appears to indicate that all compensation paid through all related employers is considered.

Each of these participants have w-2 salary from their corporations of more than $245K and each have DB contributions of about $75k. One participant has no contributions in the 401(k) (no SD and no ER contribs.). The other would like to contribute $54,500 to the 401(k). Something tells me he must be limited to a 6% employer contribution in the 401(k). But then again, the participating employer section of the document seems to indicate that compensation from all related employers is considered.

Does anyone have any insight on this?

Thanks much.