Dear Alan et al,

I have a client who has sold his business and is going to work for the buyer. He plans to enroll in the new company 401k and begin deferring salary right away so he can receive the match. In the meantime, he has a few more payroll cycles to run in his own company before he shuts the company down.

He would like to contribute $1,500 into the new plan for the remainder of the year and $7,500 into the old plan for the remainder of the year. This would keep his salary deferrals plus catch-up at $30,000 and allow him to take advantage of investment options that he prefers in his old plan.

Can he contribute to these two plans simultaneously as long as he stays at or below $30,000 with salary deferrals plus catch-up?

Thanks in advance,

Chris