contribution for owner with split comp at 2 companies

[Tom Poje]

1 plan, 2 related companies.

all employees eligible.

owner takes 150,000 at company 1 and 120,000 at company 2.

cross tested plan, owner is in own group.

is he allowed to take 52,000 from company 1 and therefore at 415 limit so nothing from company 2. (or split the 52,000 between the companies in any way shape form he wants?)

[Mike Preston]

I see no requirement to do it any specific way. Nor do I see a requirement to be consistent from one year to the next. I would be a little squeamish if the comp were 260-10 and the deduction was 0-53.

Others may be squeamish at anything other than pro-rata.

52? Are you correcting 2014?? :-)

[mphs77]

A lot of questions come to mind.....

1. What do you mean by related companies? Affiliated Service Group?

Controlled Group?

2. How does the plan define compensation? Might it be only from one

of the two "related employers"?

3. What types of business entities are the "related employers"?

So many issues and so little time.....

[Tom Poje]

Mike, it will be for 2015, just my brain is on a hard freeze even though I'm not up north, so it is 53,000.

owner set up the plan (sponsoring employer) for one company, but others may adopt it. he is basically 100% owner of both companies.