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The plan sponsor for a law firm 401k plan is set up as an LLC taxed as a partnership - equally owned (1/3) by three different Affiliated/Participating employers all taxed as an S-corp. The LLC employees a few non-owners, and each of the 3 S-corp partners are 100% owners of his or her respective firm. Since the three affiliated, participating employers (S-Corps) pay their owners W-2 compensation, the W-2 compensations are eligible for deferrals and contributions for the plan. For Pre-tax deferral contributions, payroll deductions are withheld for the owners (W-2 comp) and funded by the individual S-corp. It's a Safe Harbor match plan with a Plan Year/annual determination period for the match. Since the pre-tax deferral contribution will be deducted via payroll and funded from the owners' individual S-corp, does the corresponding Safe Harbor match need to also be funded from the individual S-corp. - or does the match need to be funded by the LLC taxed as a partnership?

Good morning to all, I have been asked to post the following question from a CPA referral source: "Facts: Individual owns 100% of an S corporation. Only employees are husband and wife. They have a solo 401K plan. They both maxed their elective deferrals and the employer contributed max profit sharing. Husband also owns another business with no employees that is taxed as a sole proprietorship Sole proprietorship is profitable in 2018. Can they also do a SEP for the sole proprietorship?" I have no further information than what is shown in the inquiry. Thank you in advance to anyone who has had to address this before and knows what is permissible.

I have a two part question and need advise. I and another highly compensated partner started an s-corp. We have NO employees other than ourselves. We both own 50% of the company so we report the majority of our income on W-2's and the rest of the income is divided equally and reported as profit sharing on K-1's. In addition, the s-corp is a partner in a general partnership. There are 9 partners in the general partnership some are incorporated and some not. The general partnership has NO employees. My partner and I in the s-corp each opened a solo 401k and have been contributing to both. The s-corp as the employer and the two of us as the employees. My first question is, my partner and I, are we allowed to contribute to solo 401ks? Are owners of s-corps who are highly compensated with no employees other than themselves allowed to have this type of retirement plan? My second question is, our corporation allowed to start a retirement plan without including the other partners in the general partnership, I have not asked but the other partners in the general partnership probably have their own retirement plans. I would like to thank you for any time spent on this post. Sincerely, Tomf