DB plan plus Solo 401k

Question on limits of dual plans…..

An entrepreneur with significant yearly income has been set up with a 412e plan for his DB plan (combination of annuity and insurance). While he is funding his DB plan can he also have a 401k defined contribution plan and is there a funding limit on the 401k plan profit sharing portion?

My understanding is that while both plans are still being funded, the PROFIT SHARING portion of the Solo401k Plan would max out at 6% of salary/net business income (current max of 245k). The salary deferral portion would be unaffected. Is this correct?

If the DB plan is maxed out regarding and further contributions, can the entrepreneur now put the maximum amount into his Solo 401k to the 54.5k (he is over 50) limit without regard to the 6% profit sharing rule?

Thanks.



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