key ee in 2 cos., $30,000 in 2 MP plan?

[Earl]

1 guy is a key employee in 2 companies. no other common ownership or ASG issues.

Can both companies maintain a MP plan and get $30,000 to the guy in each company? ($60,000 total)

Can't find a reason why not, just seem to recall something...

Thanks

[Richard Anderson]

Yes, this is OK. But, when testing for controlled group status; for 415 purposes only, the at least 80% test is replaced by 50%.