phdenver

Thanks fo your reply. Attorney A is not a W-2 employee of Partnership B. All compensation to Attorney A is via K-1 guaranteed payment. Partnership B does have W-2 employees (associates and support staff) Based on my research, I think an ASG does exist. S-Corp is an A-org and Partnership B is FSO.

I have a similar situation and hoping to see if anyone has insight: "Attorney A" is sole owner/employee of S-Corp that has been in business as solo law firm for several years prior to 2020 with a SEP already set up. On 1/1/2020, Attorney A becomes a partner in an existing law firm partnership (LLP), "Partnership B," and opts to hold partnership interests via the S-Corp. Partnership B makes guaranteed payments to S-Corp, and issues a K-1 to S-Corp for year 2020. S-Corp pays reasonable salary to Attorney A during 2020 from guaranteed payments income (from Partnership B K-1) and other S-Corp income (more on this below). S-Corp has no other employees. Partnership B has safe harbor 401(k) allowing for elective deferrals by partners up to 19,500 limit. Partnership matches 3% of employee compensation. 1. Can contributions be made to both Partnership B's 401(k) up to elective limit, plus SEP contributions by S-Corp (up to 25% of annual compensation)? 2. Does S-Corp need to adopt the Partnership B's 401(K) plan so that the 19,500 elective deferral can be made? 3. Does the S-Corp need to adopt the Partnership B's 401(k) plan to make additional employer-side contributions to 401(k) above employee elective limit? 4. Is the answer to #1 any different if a portion of S-Corp's revenue is independent of Partnership B? For instance (a) income of S-Corp not derived from practice of law in 2020 (i.e. unrelated business activities), and (b) income from S-Corp operations prior to 2020. Thanks in advance for any insight.