Guest RSNOW Posted December 3, 2003 Share Posted December 3, 2003 A potential client currently has a grandfathered SAR-SEP using the IRS model doc. They have already made some contributions for 2003 but now are realizing a cross-tested plan gives them far more leverage for their key group of employees. I'm trying to see there is anything that can be done for 2003. I don't believe they can have another qualified plan if they are on the Model SAR-SEP document. If true, would restating the SAR-SEP onto a customized doc in 2003 get around this problem ? They haven't made large contributions so there is sufficient deduction room for another plan. Does re-writing the SAR-SEP into a customized doc impact their grandfathered status on the SAR-SEP ? Thanks in advance for any thoughts or opinions. Link to comment Share on other sites More sharing options...
Gary Lesser Posted December 3, 2003 Share Posted December 3, 2003 In most cases, the client could adopt a prototype or individually designed SEP/SARSEP that wd allow for its continuance along with a qualified plan for 2003. For grandfathering purposes, IMO, do not formally terminate the SEP/SARSEP. Just let it remain "temporarily discontinued" (read: dormant; but do provide the annual contribution notice and any notices regarding amendments and the discontinuance of contributions). Perhaps the SEP could be used to hold top-heavy contributions? Link to comment Share on other sites More sharing options...
Guest RSNOW Posted December 3, 2003 Share Posted December 3, 2003 Thanks for the help Gary. [Your welcome.] Link to comment Share on other sites More sharing options...
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