Sorry, I'm half asleep today. It's the employer profit-sharing contribution that cannot exceed 25% of compensation. The total of her elective deferrals and the employer profit-sharing contribution is limited to 100% of compensation ($4K), so if all was allocated to employee elective deferrals, the maximum elective deferral would be $4K and no employer profit sharing contribution would be permitted. However, this would limit elective deferrals at the new employer to $14K so as not to exceed the $18,000 limit on elective deferrals. So it would probably be better to make a 25% of compensation ($1K) employer profit-sharing contribution and $3K of elective deferral, allowing $15K of elective deferrals at the new employer.
