Jump to content

Recommended Posts

Posted

Hi

I believe the answer is no issues but always would like to confirm:

Common factors:

Company A has a 401k/PS plan

Joe and Mary are married and have no minor children at this time

Mary owns 100% Company B and has no business relationship with Company A/no affiliation

Scenario 1

Joe is an officer of Company A (no ownership but CFO and making over threshold)

Joe's wife Mary also an employee of Company A - for all purposes, a rank&file employee

Company A provides ER contributions to both - Joe is at 415(c) dollar limit

Company B - no employees other than Mary - also provides ER monies to Mary

No issues as well as combined 415(c) limits for Mary, correct?

Scenario 2

Now Joe owns 49% of Company A. Other 51% is owned by unrelated party.

Mary is still an employee but now HCE due to attribution

 

No issues as well as combined 415(c) limits for Mary, correct?

Scenario 3

Same as Scenario 2 except Joe now is also employed by Company B

Company B pays Joe 305k of salary and wants to provide Joe maximum PS - in addition to Mary

So, Joe can get maximum limits in both companies separately, correct?

What am I not asking here?

Thank you

 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use