Maximum PS Contribution under Two Plans

[DP]

I have a calendar year medical practice (Co. A) with a SH PS 401k plan. Co A is merging into another larger practice (Co B) in June 2011. Co A's PS/401k plan is being terminated 5/28/11. Co B has a PS/401k plan.

The doctor/shareholders in Co. A always max out on their PS/401k contributions each year. Can they maximize their contribution in Co A's plan for the short year 1/1/11 - 5/28/11 and then receive an additional contribution in Co B's 2011 plan? The Co A shareholders will be minority shareholders in Co B.

I understand they can only defer $16,500 in 401k between the two plans for 2011, but can they double up on their PS contribution? Or does it depend on their ownership percentage in Co. B?

Thanks.

[Lou S.]

Or does it depend on their ownership percentage in Co. B?

Thanks.

Yes depends on ownership. They may have one annual additions limit or they may have 2.

See §415(g) and §415(h)