415 Limit for Employee who is participant in 401(k) Plan and wants to

[Lynn Campbell]

Client has compensation greater than $200K as non-owner/employee of big corp and defers $10,500 to 401(k) plus a small matching contribution. This person also has consulting business with income of $200K, and wants to set up SEP or perhaps DC or DB Plan. Does he get the full 415 limit for this new Plan, despite participation in the 401(k) Plan?

[Guest]

Based on your facts, Client can set up a qualified plan and get another 415 limit. The 415 limits apply to controlled groups of companies, but not to unrelated businesses.

[Gary Lesser]

Agreed. Assuming the businesses aren't related/controlled/affiliated a separate 415 limit applies.