Partnership of PCs-2 plans

[Guest rickw]

We have a young doc's new PC buying 50% of assets of old doc's PC. The 2 PCs will then form an operating partnership.

Old doc has existing cross-tested PS plan. An advisor has suggested that he retain that plan (for benefit of staff and young doc) and form a new DB plan to shelter proceeds from sale of practice over next, say 5 years.

Questions:

1. Am I safe to assume that some form of affilliated service group rules will apply, so DB plan has to potentially cover docs and staff in all 3 entities? (Or does that just apply if OVER 50% ownership--or am I confusing that with controlled group issues?)

2. Assuming both plans have to recognize all staff, to what extent do the employer PS contributions for rank and file offset any required DB contributions or at least do double duty (i.e. 3% top heavy or 5% gateway)?

3. If there was an especially "old" staff person, I assume we would have to be sure to exclude her classification to avoid big DB contribution?

Thanks from a CPA who knows just enough about DB plans to be truly dangerous!