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Posted

A 50% owner of LLC A with a DB plan is also a 33.333% owner of LLC B. LLC B is not related to or an adopting employer. Can income from LLC B be used for benefit purposes of LLC A's DB plan without including the the two other owners of LLC B in LLC A's DB plan?? Thanks.

Posted

To include LLC B's income, LLC B would have to adopt the plan. To see who can be excluded depends on the demographics. If there are only the 4 employees of LLC A and LLC B, and both of LLC A's owners are in the DB plan, then you pass 401(a)(26) even if you exclude LLC B's owners.

If there are other employees besides the owners in LLC B, then you have some obvious complexities.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

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