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SEP + Profit Sharing or Cash Balance


Stash026
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Good morning!  I have a new client that is currently maxing out a SEP, but also has the opportunity to start a Profit Sharing or Cash Balance Plan.  I don't believe the SEP has any bearing on the maximum contribution into the other plans, as the companies are unrelated, but I wanted to make sure someone could max out both a SEP and a Profit Sharing (or receive a contribution in a Cash Balance).

Thanks in advance!

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Your belief is incorrect. 

EDIT - when I wrote the above I had missed the "unrelated" part.  CBZ is correct if truly unrelated for CG, ASG and 415(h) purposes then yes the participant could do this. 

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I carry stuff uphill for others who get all the glory.

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2 hours ago, Bill Presson said:

Even if the companies are unrelated?

TBH I missed that "unrelated" part.  Problem with old eyes reading a forum message on a mobile device early in the morning.  So if they are truly unrelated, then yes one person could participate in a one company's SEP and the other unrelated company's qualified plan(s).   I will edit my other reply to note this.  Thanks. 

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I carry stuff uphill for others who get all the glory.

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