Limits for Individual covered by multiple plans

[rfahey]

I am sure this has been posted before but please bear with me:

Individual is covered by his employer's 401K plan where he defers the $22,000 maximum in 2011 ( over age 50 ) and also gets a sizeable profit sharing contribution ( $30,000 ). THis is a company that he does not own. These are within his 415 limits and this plan is monitored by a TPA carefully.

He also has a side business unrelated to the above where he has a solo 401K plan for himself only and earns about $100,000. I don't believe he can contribute to the elective deferral portion of his solo K plan. But I do believe he can contribute the full 25% profir sharing to his solo K plan.

Is this correct ?

THanks

[QNPG]

I am sure this has been posted before but please bear with me:

Individual is covered by his employer's 401K plan where he defers the $22,000 maximum in 2011 ( over age 50 ) and also gets a sizeable profit sharing contribution ( $30,000 ). THis is a company that he does not own. These are within his 415 limits and this plan is monitored by a TPA carefully.

He also has a side business unrelated to the above where he has a solo 401K plan for himself only and earns about $100,000. I don't believe he can contribute to the elective deferral portion of his solo K plan. But I do believe he can contribute the full 25% profir sharing to his solo K plan.

Is this correct ?

THanks

Yes, that is correct. The 402(g) limit is a personal limit, and therefore, he cannot contribute more than what he already has. As for the 415 limit, he could contribute 25% of his income to that solo plan in the same year.

[Tom Poje]

see 1.415-8 combining/aggregating plans - applies only to an employer (or related employers in the case of a controlled group) not all plans an employee might participate in.

see further example 1.415-10 of an employee who had 75% benefit in two different DB plans unrelated employers and its not a problem until the companies merged.

[Guest John P.]

My question is.....is it 25% of profits less self-employments taxes to determine the Profit Share amount? Thanks.