Guest MTransue Posted April 2, 2012 Report Share Posted April 2, 2012 I have a client who is 100% owner in Company A and sponsors a 401(k) Plan on a calendar year. The plan struggles to pass the ADP test each year, and refunds are a possibility each year. The same person has 50% ownership in Company B, with his partner. There are no employees in Company B. There is no control group, nor affiliated service group with Company A & B. Neither company has union employees. In 2012, the owners has made deferral contributions in Company A plan already. The owner and his partner would like to start a SEP IRA in 2012 for them. Can the owner in Company A & B, participate in both the 401(k) plan with Company A, and the SEP IRA with Company B. I do not think he is permitted to do so, but cannot site sources that confirm. The accountants are not agreeing with my answer, and I need to "show" them that participation in a 401(k) and SEP IRA in the same plan year are not permitted. Thanks in advance for any help! Link to comment Share on other sites More sharing options...
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