Does this situation result in an affiliated service group?

[Guest wildrake]

I need opions on whether the following situation constitutes an affiliated service group and what possible solutions might be;

Company A is an employee benefits firm consisting of Owner A (49%) owner B (49%) and owner c (2%). They have 4 employess that make 20K, 30K,30K, and 85K respectfully. Owner a and B recieve only 1099 income paid to their individual seperate corporations. Owner a and b want to set up a simple plan for the 4 employees of Company A and also be able to fully fund individual SEP accounts for themselves through their individual companys. there income is derived from brokerage commisions and fees generated from the sale of group insurance and the 1099 income is approx. 200k to each owner A and owner B paid trough owner a's corp (owner a is 100% owner) and owner b's corp (owner b is 100% owner). Can this be done? I know that this is not a controll group, but do we have an affiliated service group? If so what are some possible solutions? thanks for your help.

Wil

[alanm]

Probably can't be done. It will probably be deemed affiliated.

All should get the same benefits. Making the employees do deferrals while the owners get a profit sharing contribution is discriminatory.