DB/DC Limit

[Pension RC]

I have a self employed client with a DB plan and a 401k/PS plan. She usually makes the maximum 401k contribution with catch-up, contributes about most of her net Schedule C (minus 1/2 SE tax) to her DB plan, and 6% of her remaining plan comp to the PS plan. Faced with the reality that she is approaching the DB plan's 415 limit, she is wondering about reducing her DB contribution and opening a SEP and contributing the excess into that. Am I correct that this doesn't make sense, because whatever she could contribute to the SEP, she could have contributed to the PS plan?

Thanks!

[AndyH]

Yes, plus many SEPs have a requirement that they are the exclusive plan. And you have other issues such as top heavy depending on what the DB document says.