Multiple Employer deduction allocation?

[Guest Shrek'sconfused]

DB plan. Corp is sponsor, partnership adopted plan.

Corp has just one employee, the owner.

Is the allocation of the db contribution plan required to be allocated in any specific way between the entities?

[J Simmons]

See this thread for some info:

http://benefitslink.com/boards/index.php?s...amp;hl=multiple

[Blinky the 3-eyed Fish]

There's not enough info in the first post. Are they unrelated entities, a controlled group or an affiliated service group?

Oops... I didn't read the post title.

[Guest Shrek'sconfused]

There's not enough info in the first post. Are they unrelated entities, a controlled group or an affiliated service group?

Oops... I didn't read the post title.

It's a controlled group. husband and wife own partnership. He is the sole owner of the corp. Does that change the minimum funding rules that Jsimmons posted.

[J Simmons]

If you are a control group, then my referenced info would not apply to your situation. You'd be a single employer plan rather than a multiple employer one--terms of art.

[Guest Shrek'sconfused]

If you are a control group, then my referenced info would not apply to your situation. You'd be a single employer plan rather than a multiple employer one--terms of art.

If I am a controlled group then where am I required to take the deduction? Form 1120 or 1040? And what's telling me the allocation method?

Thank you

[Blinky the 3-eyed Fish]

The contribution to a plan sponsored by two members of a controlled group should be able to be deducted amongst either group in any manner. However, there is a lack of guidance in this area. The most conservative approach is to deduct it based on the accruals in a reasonable manner.