Guest dubya Posted June 16, 2004 Share Posted June 16, 2004 I have a potential client who has a SEP and now wants to switch to a PS plan. Apparantly he has several employees who work low hours, yet were eligible to be in the SEP. He now wants to keep them out of the PS. Assuming we go with a 1000 hour requirement/1 year of service to enter the PS plan, is it acceptable therefore that we could have employees who were in the SEP, but not eligible to be in the PS plan? Seems OK to me. Link to comment Share on other sites More sharing options...
Gary Lesser Posted June 16, 2004 Share Posted June 16, 2004 Your interpretation is correct. If the SEP and PS contributions are deductible in the same taxable year, however, the PS contribution deduction amount is reduced by the deductible SEP contribution amount. Link to comment Share on other sites More sharing options...
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