controlled groups and attribution

[Guest Bob Monte]

If a person owns a small biz as a sole prop with no employees and his wife owns another small biz as a sole prop in a totally unrelated business with 2-3 employees, is this situation subject to the attribution and controlled group rules. The spouses' businesses have no connection at all other than the marriage.

If so, am I right in concluding that both retirement plans must be treated as one?

Since SIMPLEs and SEPs are IRAs and not qualified retirement plans would using them avoid those rules?

[Guest Doug Goelz]

See the Q&A Section of BenefitsLink (above the link to the message boards). There is a category of questions titled "Who's the Employer" by S. Derrin Watson. In particular, see Question 111. This deals directly with your question. Also see 113 and 115 for further details.

[Guest Bob Monte]

Thanx for the guidance. I thought it was a simply question bu the answer sure is convulted (like most tax issues). I believe I understood it all, but the part about having children under 21 is puzzling. Thanx again