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Showing results for tags 'Does 414 aggregation apply?'.
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Partnership of professional corps. Two PCs, one partnership, a classic affiliated service group. 3 separate, identical PS plans, one for each entity. Can partner A's plan make a loan to the individual shareholder of partner B? B does not sponsor A's plan, is not a fiduciary, etc. However A, B and the partnership are a single employer per 414(m). 4975(e)(2)© and (H) define a disqualified person to include a 10% shareholder of an employer whose employees are covered by the plan. Under a 414 definition of "employer" the proposed loan would be a PT as individual B is a shareholder of Corp B, which is part of the aggregated employer. However 414(m)(4) lists the specific code sections to which it applies and this list does not include 4975. Still feels a little too close for comfort.
