401(k) Plan/SARSEP Testing

[Guest Jean Blackwood]

An Employer had a SARSEP plan in place for the first half of the plan year. The Employer terminated the SARSEP and set-up a 401(k) Plan for the second half of the plan year. Would you include the salary reduction contributions made to the SARSEP to perform the 401(k) ADP test? Would you consider all contributions (salary reductions & discretionary) from both plans for the 415 limits? To determine the limits on deductible contributions would you back out the salary reductions made to both plans from the total ER contribution allocated or just the back out the salary reductions under the 401(k) Plan? Thank you!

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Jean Blackwood

[Guest]

Jean - you might try asking this one under the SEP message board. Gary Lesser is pretty good on these, and he might not be looking at this board