Owner participating in plans of several businesses

Unless there is a controlled group issue - is there any reason why an owner/highly compensated employee/key employee  cannot max out his deferrals in each company's plan - as well as  maxing out in each plan in total. (56,000 total for 2019)?  

Thanks!

The deferral limit is an individual limit and not a plan limit. So each person only gets $19,000 + $6,000 catchup regardless of the number of plans for which they are eligible.

What Bill said but that does not prevent someone from maxing out contributions in multiple plans (of unrelated employers).

Be aware of potential 415 control group - if person owns more than 50% but less than 80% of multiple companies, there is not a control group for 410(b) or 401(a)(4) purposes, but that person has aggregated 415 limits among all DC and DB plans sponsored by such entities. If X owns 51% of companies A, B & C, and a different unrelated individual owns the other 49% of each then there is no control group but X has one $56,000 DC 415 limit and one $225,000 DB 415 limit combined among any plans sponsored by A, B & C.

1 hour ago, CuseFan said:

Be aware of potential 415 control group - if person owns more than 50% but less than 80% of multiple companies, there is not a control group for 410(b) or 401(a)(4) purposes, but that person has aggregated 415 limits among all DC and DB plans sponsored by such entities. If X owns 51% of companies A, B & C, and a different unrelated individual owns the other 49% of each then there is no control group but X has one $56,000 DC 415 limit and one $225,000 DB 415 limit combined among any plans sponsored by A, B & C.

That rule only applies for Parent - Subsidiary controlled groups. 

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415(h) 50 percent control

For purposes of applying subsections (b) and (c) of section 414 to this section, the phrase "more than 50 percent" shall be substituted for the phrase "at least 80 percent" each place it appears in section 1563(a)(1).

 

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1563(a)(1) Parent-subsidiary controlled group

One or more chains of corporations connected through stock ownership with a common parent corporation if—

(A) stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned (within the meaning of subsection (d)(1)) by one or more of the other corporations; and

(B) the common parent corporation owns (within the meaning of subsection (d)(1)) stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of stock of at least one of the other corporations, excluding, in computing such voting power or value, stock owned directly by such other corporations.

 

While not specifically mentioned above, "unrelated" also means not part of an affiliated service group.