Guest Pat Metallic Posted December 22, 2005 Report Share Posted December 22, 2005 An individual is a 50% partner in a partnership that sponsors a SEP. This individual also has unrelated self employment income from a business in which he is the sole employee and 100% owner. He would like to open a SEP for that side business. What are the concerns for that new SEP (i.e. are the combined contributions limited to the 415 limit)? Link to comment Share on other sites More sharing options...
Guest mjb Posted December 22, 2005 Report Share Posted December 22, 2005 The contributions would have to aggregated only if the partner owns more than 50.00% of the partnership. See IRC 415(h) and 415(k)(4). Link to comment Share on other sites More sharing options...
Guest Pat Metallic Posted December 22, 2005 Report Share Posted December 22, 2005 The contributions would have to aggregated only if the partner owns more than 50.00% of the partnership. See IRC 415(h) and 415(k)(4). As a 50% owner and unrelated income of $70,000, could he use a uni-k and put away more contributions ($14,000, the 2005 402(g) limit)? Thanks. Link to comment Share on other sites More sharing options...
Appleby Posted December 22, 2005 Report Share Posted December 22, 2005 mjb, he would also need to check for attribution-right? Pat- assuming no attribution , and assuming that his spouse ( if married) is not one of the partners in the partnership, he can out $14,00 + $4,000 if he is at least age 50 by 12/31/2005, plus 20% of his modified net profit from the SPship. ...let's wait for one of the experts on attributions to add comments. I am not an expert on attribution 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...
Guest mjb Posted December 22, 2005 Report Share Posted December 22, 2005 A- for Pat's information What attribution issues are there? Link to comment Share on other sites More sharing options...
Appleby Posted December 23, 2005 Report Share Posted December 23, 2005 I am not saying that there is-rather, I am asking if that aspect should be considered as well. It does not appear that we have enough information to determine that we can rule out the affiliated service rule...but I could be wrong. A-Orgs, B-Orgs and such is French to me- and I don’t speak French...When in doubt, I defer o the experts on the topic 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...
Guest Pat Metallic Posted December 23, 2005 Report Share Posted December 23, 2005 I am not saying that there is-rather, I am asking if that aspect should be considered as well. It does not appear that we have enough information to determine that we can rule out the affiliated service rule...but I could be wrong. A-Orgs, B-Orgs and such is French to me- and I don’t speak French...When in doubt, I defer o the experts on the topic The spouse is not involved in either businesses. Link to comment Share on other sites More sharing options...
Gary Lesser Posted December 23, 2005 Report Share Posted December 23, 2005 So, assuming just 50% ownership (i.e., no indirect ownership, and not part of an ASG), the entities appear to be separate entities for plan purposes and the 415 limits (when applicable) are applied separately to each plan. I always like to ask who or what owns the remaining 50 percent. I always seem to get strange answers. ?? If 50/50 how are decisions made? Link to comment Share on other sites More sharing options...
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