can gateway contributions to PSP be offset by sep contribution

[Guest Ed Dillon]

An Law firm with five employees and an exisiting SEP made a mid year contribution of 3% of pay to the SEP for the plan year 2004. The client adopted a crosstested PSP at year end. Can the 5% gateway be reduced to 2%, ie. offset by the sep contributions? The ERISA outline book chapter Nine, references that contributions to "other plans" of the employer can be used for 401a4 testing. Do SEPs qualify as an 'other plans' ?

[AndyH]

I think not.

There have been some similar discussions in the SEP, SARSEP etc. Board so I would suggest a search of that. I believe that most if not all commenters would say no because a SEP is not a qualified plan under 401(a).

But this is just one opinion along with some hearsay.