More SARSEP questions, especially maintaining a SARSEP and another pla

[John A]

Am I correct that an employee can defer under both a 401(k) plan and a non-model (prototype) SARSEP plan of the same employer provided that the 402(g) limit is not exceeded when deferrals from both plans are combined?

Can an employer that maintains n IRS model SARSEP also maintain a qualified plan if each plan covers separate groups of employees (no overlap)?

[Gary Lesser]

A "model" plan can NOT be used by an employer that maintains a qualified plan, but a prototype may generally be used (since they rarely contain such a limitation; but sometimes they do!). Note that the qualified plan MUST contain coordination requirments if it is to be used with a SEP (rev Proc 87-50, Section 5.05). See, to, LRM for DC plans. Yes, yhe 402(g) limit does apply in the aggregate.