Am I controlled group for setting up 2 separate plans?

[Jakyasar]

Hi

I am fairly certain that it is ok to do the following but want to confirm:

Joe owns 50% of company A (other 50% owned by unrelated person)

Joe owns 100% of company B

No affiliation between the 2 companies.

Joe can set up a DB plan separately under each company with full 415(b) limits as long as ownership is 50% or less in company A, agree?

Joe can set up a DC plan separately under each company with full 415(c) limits (58k in each company) as long as ownership is 50% or less in company A, agree?

Please disregard any PBGC coverage issues as this is a general question

Thanks

[CuseFan]

Yes, but be careful on the (more than) 50% - is it just owns or "considered owning" as well? I don't recall, but if it includes the latter, then you need to make sure he has no currently exercisable option to buy the other 50% (or part thereof) as he would be considered as owning more than 50%.

[Jakyasar]

Very good point, thank you for pointing out.