Two dc plans to get 25% deduction for employer?

[Guest cascigm]

Can a company have two dc plans covering identical employee group and thereby increase deduction limit for employer to 25%? not using mp/ps combination?

ex.

PS plan 001 contribute 15% of eligible comp.

401k/match plan 002, match and deferral = 10% of comp.

If so, why not the design of 2 ps plans vs. typical mp/ps combo?

G

[KJohnson]

You need a money purchase pension to do this. 401(k) is a PS Plan. All PS Plans are considered one for 404--404(a)(3)(A)(iv) and you deductibility limit is therefore 15% 404(a)(3)(A)(i).

[Larry M]

However, if there are enough employees in the plan, it is possible to design a single profit sharing plan where some (or one) employees receive 25% of their compensation while others receive a lesser percent - as long as the total contribution for all eligible employees is no more than 15% of their total compensation.

Also, if 25% is not enough, consider a defined benefit plan.