lakesandtrees

@Peter Gulia Thank you for the suggestion, I've reached out to our firm's librarian to see if I can secure a copy. @QDROphile Yes I do have a great partner who has a wealth of experience and is always willing to advise. Unfortunately they were out of town last week but I will be consulting with them today. I was hoping to continue moving forward on the issue while they were away. Thus, I posted here. Thank you!

Hello, One year in practice ERISA attorney here, so please, go easy on me. FACTS In the financial services industry, three individuals, A, B and C each maintain their own entity in which the individual has 100% ownership. A's LLC - maintains no plans. B'S LLC - maintains a SIMPLE 401K in which only B participates C's Corp. - maintains a SEP in which C and spouse participate. Each entity has a 33% interest in the Main LLC. A, B, and C, through their entities, provide financial advice to clients of the Main LLC. Main LLC then pays A, B and C's entities 1099 income. Main LLC has five employees, none of which are A, B or C or their spouses. The employees of Main LLC have never been given the opportunity to participate in either the SIMPLE or the SEP. CONCLUSIONS I've concluded that under the ASG rules, Main LLC is a FSO and A, B & C entity's are A-Orgs. Thus, Main LLC and A, B & C's entities are an affiliated service group. Client is the Main LLC, and its goal is to provide a retainment plan for the Main LLC and its employees. Potentially later adding in a health plan. My conclusion is that B LLC's SIMPLE 401(K) AND C Corp's SEP have both made significant errors and must make a VCP submission. However, how can they correct with the improperly excluded employees? ERRORS SIMPLE 401(k) Maintained during the same year as another retirement plan. Contributions must stop immediately. Main LLC employees improperly excluded. Make corrective contributions to employees. SEP Main LLC employees improperly excluded. Make corrective contributions. How can both Plans be corrected? Do you undo the SIMPLE contributions/correct deferral deductions then terminate the Plan?