Compensation limit and 2 plans in controlled group

[30Rock]

If an HCE participates in plan A and plan B which are in a controlled group and has Compensation of $200,000 in each plan and a 2% employer contribution, how much gets allocated to each plan account? I realize that for 2025 the 401(a)(17) compensation cap is $350,000 so it appears the maximum contribution should be $7000 across the 2 plans? Does one plan allocate $4000 and the other $3000? Thanks!

[CuseFan]

Yes, the 2% would be on $350K total and limited to $7,000. Absent any specific language in either or both plans on how to adjust, I would say prorate, so $175K comp in each plan and a$3,500 contribution.

[30Rock]

Sounds good thank you!