EE in plan out of country

[Becky Schwing]

Had question posed to me by broker on plan.  Three person plan - Dad Mom & Daughter only.  Daughter working in UK and apparently in a plan for the UK company where she makes deferrals.  

If she also worked from Mom and Dad co. in U.S. this year is there any impact on her U.S. plan deferrals based on her deferrals in a U.K. plan?  

No other detail from agent.  Told her I have no idea but would check here or tell them to contact ERISA attorney.  

[Peter Gulia]

Is the UK company under common control with, or otherwise a part of the same IRC § 414 employer as, the employer that sponsors or participates in the retirement plan your query is about?

 

And if not, how much compensation does the worker have from employers for the US plan?

[Becky Schwing]

1. I don't think there is a relationship between employers

2. Not exactly certain - last year it was about $33K - This year might only be about $11K

[Larry Starr]

8 hours ago, Becky Schwing said:

Had question posed to me by broker on plan.  Three person plan - Dad Mom & Daughter only.  Daughter working in UK and apparently in a plan for the UK company where she makes deferrals.  

If she also worked from Mom and Dad co. in U.S. this year is there any impact on her U.S. plan deferrals based on her deferrals in a U.K. plan?  

No other detail from agent.  Told her I have no idea but would check here or tell them to contact ERISA attorney.  

Assuming no connection between the US and UK company, if she has legitimate compensation from the US company, she MUST be taken into account in the plan (but as the daughter, she is an HCE and can be zeroed out if desired).  So, she surely can defer into the US plan without reference to what went on in the UK.