K-t-F Posted July 30, 2004 Posted July 30, 2004 2 businesses, A and B Company A: Dave 50% owner Dave's dad 50% owner Company B: Dave 49% owner Dave's wife 51% owner - Dave considered 100% owner, attribution Controlled group? I dont think so (hashes out with someone), comments welcome Company A is going to put in place a Simple (has other EEs). Can Company B establish a Solo 401 for Dave and his wife (no other EEs)? Its not easy being green
Blinky the 3-eyed Fish Posted July 30, 2004 Posted July 30, 2004 Unless Dave is under 21, then you are right that it is not a controlled group. Thus, your plan situation is feasible. However, the SIMPLE deferrals will count toward the 402(g) limit, so watch for that. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
Blinky the 3-eyed Fish Posted July 30, 2004 Posted July 30, 2004 He is what? Under 21? "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
K-t-F Posted July 31, 2004 Author Posted July 31, 2004 NO... sorry... he is over 21. Thanks Blinky Its not easy being green
K-t-F Posted August 3, 2004 Author Posted August 3, 2004 Let me change this and see what people think.... Company A: Dave 100% owner has 3 EEs Company B: Dave 49% owner Dave's wife 51% owner - Dave considered 100% owner, attribution Dave and wife only EEs These 2 companies are not an Affiliated Service Group, have nothing to do with each other, do not do business with each other, separate locations... Client would like to (ideally) put in a SH for Company A and a Solo for company B. Obviously max out Company B Comments? Its not easy being green
Lori Foresz Posted August 4, 2004 Posted August 4, 2004 My thoughts are that Company B's plan would not pass coverage so it would need to be aggregated with Company A's plan for 401(a)(4). If the solo is deferral only, why not just have one plan covering the 3 ees, Dave, and Dave's wife? However, if Plan B also has the maximim PS feature (i.e. 28k to Dave) then you would have to run the general test under 401(a)(4) on an aggregated basis and I think Company A's employees would need to get a least the gateway and maybe more. More comments would be great.
Belgarath Posted August 4, 2004 Posted August 4, 2004 Maybe not an ASG, but don't you now have a controlled group? And therefore the desired arrangement gets thrown out the window?
K-t-F Posted August 4, 2004 Author Posted August 4, 2004 I thought it was a controlled group... wanted to post to see if anyone would come up with a reason why it wasn't. Its not easy being green
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