Fisher

Is there any method to correct SEP contributions. For the last several years, a client only used base wages for contributions that were declared. They have been operating under the Model 5305 and did not know they could not exclude bonuses and overtime. Can they self-correct?

If the non-owner HCEs are not "KEY" employees for top heavy purposes, it would seem as though the plan would be subject to top heavy minimums.

If an employer provides an non-elective safe harbor contribution (no contingent notice) can they discontinue it during the year? I see topics regarding discontinuting safe harbor matching contributions, but not the non-elective. Also if did give the contingent notice and started contributing the non-elective during the year, could they stop during the year?

Not sure why they would want a 401k versus a 403b. If they are a 3121(w)(3) church organization, there would be no discrimination testing required in a 403b Pension program while if establish a 401k they would be subject to ADP, ACP, 401(a)(4) etc.

If a self employed (unincorporated) business later forms a partnership (PLLC), does all service start over if want to establish a SEP for the PLLC or can prior service be recognized.

Can anyone provide me a site I could use to provide a client as to when the early distribution penalty applies. My understanding is that is is the date the participant ACTUALY attains age 591/2 not the calendar year which they turn 59 1/2

Parent A owns 100% of Company X. A also owns 52% of Company Y with 4 adult children also owning 32%(8% each). The other 16% ownership is unrelated. I would just like confirmation that this would represent a controlled group since A owns MORE than 50%, thus requiring the adult childrens shares to be considered for a total of 84%. On the other hand, if A only owned an even 50%, and each adult child had 8.50% each totalling 34%, there would not be a controlled group situation between Company X & Y.