austin3515 Posted November 30, 2016 Report Share Posted November 30, 2016 Solo 401k Business Owner owns 100% of his business and has no employees. He's been maxing out his SEP for years. Now, he acquires the assets of another business and as part of the transaction agrees to sponsor their 401k Plan. I am resigned to the fact that 414a requires that the new owner must recognize all service with the acquired business because it adopted their plan. Based on the wording in 414a that requirement is not limited to just the acquired plan, and also clearly applies to SEPs. So the question is, are there any 410b6c like provisions in a SEP that would allow me to exclude ALL of the acquired employees for a period of time? Assume they used the max 3 year eligibility period. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
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