Doctor with separate Schedule C income

[drakecohen]

A doctor, partner in a Medical Practice, covered by a 401k has separate Schedule C income for a separate location apart from the practice.

 

Can the doctor set up a one-participant DB plan using only that Schedule C income?

 

If not, can a separate DB plan be set up if the Schedule C income was not related to doctoring (ie. from writing articles or getting trustee fees)?

[jpod]

Technically, the answer to your first question is certainly "yes," but I assume what you are really asking about is whether there would be any 410(b) coverage or other qualification issues/roadblocks to address.  Someone needs to determine if the Schedule C trade or business is a member of either a 414(c) group or a 414(m) group with the medical practice partnership (or any other trade or business with employees).  If not, there shouldn't be any issues with setting up a separate plan just for the doctor's Schedule C business.

[CuseFan]

You say a separate location, but I assume you mean a separate business. As jpod noted, you'll need to first determine if there is a control group or affiliated service group and, if neither applies, you should be good to go.