Guest nan002 Posted October 20, 2005 Share Posted October 20, 2005 We have an individual who is trying to set up 2 SEP plans for her 2 companies. Do you know if this is allowed? Link to comment Share on other sites More sharing options...
Appleby Posted October 21, 2005 Share Posted October 21, 2005 Possibly...but there may be no advantage to having two SEPs instead of one, because of the controlled group rules. In general, the controlled group rules treat employers that are part of a controlled group as one employer for retirement plans purposes…which means that only one plan limit would apply . If she owns 100 percent of both businesses, the businesses are part of a controlled group. If she owns less than 100 percent, then the applicable rules must be applied to determine if the businesses are part of a controlled group …or part of an affiliated service group Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
Gary Lesser Posted October 21, 2005 Share Posted October 21, 2005 And if the employers are related, controlled, or affilliated, the plan with the least stringent requirements apply. If plan provisions differ as to testing or allocations they may be discriminatory. Also, compensation should be defined the same in both plans. Both plans may not be fully integrated. Would it be possible for both entities to adopt a single plan? If not, why not? Link to comment Share on other sites More sharing options...
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