Deferrals in a two Employer Plan

[ewatson12]

I have a plan with two participating employers. I have one employee who gets a check from both employers and recently began deferring. He has since told me he does not want the 3% withheld from his check from both employers - just one.

First- can this be done? Does it simply need to be stated on the enrollment forms?

Second - compensation should be considered from both employers to determine his total comp correct? If this is the case, if his pay from company 1 is 1400.00 and from employer 2 is 400.00, and he only wants 3% from company 1 check withheld, that means he would not be eligible for a 3% match of that amount since his deferral would actually be 2.33% of his total income under the plan?

Can someone offer guidance here?

Thanks!

[BG5150]

Is this a controlled group situation, or a multiple employer plan?

[ewatson12]

Is this a controlled group situation, or a multiple employer plan?

Controlled group

[BG5150]

To the second point, his compensation from all members of the group will be counted together.

[david rigby]

Um, just what do you mean by "3% match"?

[ewatson12]

Um, just what do you mean by "3% match"?

They have the basic sh match of 100% of the first 3%, 50% of the next 2%. I mean that even though he is deferring 3% of his income from 1 check, it would not actually be 3% of his compensation meaning he could only receive the employer contribution equal to the actual % of his total compensation.