Maximum Pension Plan Contributions (Cash Balance Plan & SEP-IRA)

SEP-IRA contributions are currently maxed out at $53,000, not $59,000.

While I can't address most of your concerns, I believe a company with a SEP is prohibited from having any other plan covering the same employees.

Also a side note, a DC or DB plan must be adopted and minimally funded before the end of the year. The balance of the funding can happen between 1/1 and the due date of the return.

I asked the question because I also have "heard" that you can't have a SEP (a qualified employer plan) and another employer plan. My own research tells me that this is true if the SEP was created using IRS Form 5305-SEP. But... if the SEP was created using a prototype SEP document (e.g., some financial company's SEP document) then one is not precluded from having both a DB plan and the SEP. I just need someone to confirm this. The individual in question could rollover the SEP money into a 401(k) with profit sharing and also have a DB plan. We are just wondering whether we have to actually establish the 401(k) and rollover the money.

Lastly, any time I research combo plans for the PSC, they are always a Cash Balance plan and 401K.... never a CB and SEP.

I continue to research this and it turns out that using a combo plan (Cash balance = 401 K with profit sharing) has a limitation for a one person PSC. The CB plan is not subject to PBGC insurance and that limits the profit percentage to 6% of $265,000 maximum compensation. So the maximum dollars that can go into the 401K for some who has reached age

I still would like some confirmation that contributions can still be made to a SEP rather than a 401K as long as the SEP is not based on IRS Form 5305-SEP.