401(k) limit between 2 Plans

[Vlad401k]

I have a question about 401(k) contribution limit when a someone participates in 2 plans. I understand that you can contribute up to the limit for both plans assuming the companies are no related (there is no affiliate relationship). Does that simply mean that the 2 companies are not in a control group/affiliated service group relationship?

Here's the situation:

A participant own 100% business of Company A and 25% of Company B. Company A and B are not part of Control Group/Affiliated Service Group. Can he max out contributions with both plans (of course, assuming that he does not go over the 402(g) limit).

Thanks!

[C. B. Zeller]

If Company A and Company B are not part of a controlled group or affiliated service group, then an individual who is a participant in both company's plans has a separate 415 limit in each plan and can receive his full annual additions limit in each plan. As you pointed out, he still has only a single 402(g) limit.

[Lou S.]

As Zeller notes he has one 402(g) limit so if he exceeds that limit he'll need to request a 402(g) refund from at least one of the plans. The plan should have procedures for making that request and based on factors such as matching or investment options it may be advantageous for the participant to request the refund from Plan A or Plan B. The plan will probably want some evidence of the 402(g) excess such as W-2s.

[CuseFan]

1 hour ago, Vlad401k said:

100% business of Company A and 25% of Company B

Need to keep eye on this because if 25% ownership goes to 51% then the 415 limit is also combined - you have a CG for that person's 415 limit even though not a CG in general.