Multiple employers revisited.

[scarabrad]

Folks,

Have found the input on this site invaluable and hope you can help me with my particular situation. I have done extensive research online and spoken with my accountant and benefits manager and no one can seem to give me a final, definitive answer.

I have two employers, one of whom offers a 403(b) and an unrelated employer who offers a 401(k). Because I am transitioning between jobs, but still working at both employers, I am contributing a sufficient amount to both plans that will guarantee me an employer match. My separate salaries support the amounts contributed, described below:

For 2012, I have contributed approximately $10,200 to the 403(b) plan with a $7600 match from my employer. I have contributed $6,800 to my 401(k) plan and have received matching funds of $27,000k under a special arrangement my particular group has (match is based on overall salary, not on my particular contributions).

Thus, I have personally contributed $17,000k, the maximum allowable for 2012. That would leave $33,000 of employer matches to get me to the total of $50K maximum total contributions (under section 415 limitations) for 2012, if it was only for one employer. But because I have two separate employers and the matches were not coordinated, I have gone over the $50K limit with total contributions of ~$52,000K.

Because these are two separate unrelated employers, have I violated (inadvertently) the section 415 limits and must I do a corrective distribution or am I ok?

Again, I have not exceeded the $17k in personal contributions...it is only on the employer match side that limits have been "exceeded".

Any advice I can get would be greatly appreciated!

Happy Holidays to all.

[Bill Presson]

If the employers are unrelated the $50k limit is based on each employers plan.

The $17k deferral limit is an individual limit and you appear to have satisfied that requirement.

Based on your info, I don't see an issue.

[Guest GeerTom]

See 415(k)(4). If you control the 401(k) plan sponsor within the meaning of 414(b) or ©, the plans are aggregated. The employers do not have to be related, just the (k) plan sponsor controlled by you.

[scarabrad]

GeerTom,

I am simply a W2 employee of both institutions which are entirely unrelated. I have no ownership interest. How does that affect my situation?

Thanks for the input thus far!

[Guest GeerTom]

In that case. they are not related and you are good to go.

Is your appetite for savings satiated? If not, you could have either or both of another 401(k) at the sponsor of the 403(b) or a 457.

Thomas L. Geer