Guest cdizzle Posted June 23, 2004 Posted June 23, 2004 Real Estate Sole Proprietor (Schedule C) wants to setup a SEP. He owns 100% of another company with 5 employees, which he does not work for or receive compensation. The company is a C-Corp that 2 years ago terminated a 401k plan. What issues do you see for the Sole prop? I thought a SEP did not require discrimination testing which would allow us to ignore the employees of the other company. Thank you
Gary Lesser Posted June 24, 2004 Posted June 24, 2004 Not in this life. All employees of the controlled group must be consided for eligibility purposes. See IRC 414(b) and ©.
Guest Moe Howard2 Posted June 25, 2004 Posted June 25, 2004 Gary, do you mean IRC 414© and "see" ? Nothing I like more than some good ole benefits humor! Thanks Moe, I fixed the cite in above post. --gsl
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