Separate 415 Limits?

[Cloudy]

Dr. is 12.5% owner of a business that sponsors a CB plan and he owns 100% of a sole proprietorship which may start a DB plan. Does he have a separate 415 limit under each plan?

[Andy the Actuary]

Sec IRC Sec. 414©, 415(f), 415(h) and regulations thereunder

[John Feldt ERPA CPC QPA]

Also it may be wise to prehaps consider the affiliated service group rules under 414(m) for determining who "the employer" really is overall for 415 purposes.

414 (m) Employees of an affiliated service group

(1) In general
For purposes of the employee benefit requirements listed in paragraph (4), except to the extent otherwise provided in regulations, all employees of the members of an affiliated service group shall be treated as employed by a single employer.

(2) Affiliated service group
For purposes of this subsection, the term “affiliated service group” means a group consisting of a service organization (hereinafter in this paragraph referred to as the “first organization”) and one or more of the following:

(A) any service organization which—
(i) is a shareholder or partner in the first organization, and
(ii) regularly performs services for the first organization or is regularly associated with the first organization in performing services for third persons, and

(B) any other organization if—
(i) a significant portion of the business of such organization is the performance of services (for the first organization, for organizations described in subparagraph (A), or for both) of a type historically performed in such service field by employees, and
(ii) 10 percent or more of the interests in such organization is held by persons who are highly compensated employees (within the meaning of section 414(q)) of the first organization or an organization described in subparagraph (A).

(3) Service organizations
For purposes of this subsection, the term “service organization” means an organization the principal business of which is the performance of services.