Plan Design

[Guest naveen]

We have a situation for which we need your suggestions.

Our client, Elizabeth a 100% owner of an S corporation, husband is the only employee, sponsors two plans.

One Defined Benefit Plan effective 01/01/2006 and a 401(k) Safe Harbor effective 01/01/2007.

Elizabeth has entered into a partnership around July 2007. The partnership currently has three employees along-with the current partner. The current partnership sponsors a 412(i) plan.

Elizabeth does not wish to be part of the 412(i) plan.

Please let us know what options we can put forward to Elizabeth.

Would she have to discontinue any of her current plans?

[K2retire]

You have not provided enough information. Are Elizabeth's corporation and the partnership a controlled group or affiliated service group?

[Guest naveen]

Prior to the partnership both the entities were unrelated with each other.

[K2retire]

And after?

[austin3515]

1) We need to know the ownership split of the partnership

2) We need to know how (if at all) the S-Corp and the partnership work together, whether or not they are a service industry, etc. If a potential ASG exists, there are a lot more particulars, but what I've mentioned could help to quickly rule it out.

[Guest naveen]

Elizabeth's (A Doctor) S corp enters into a partnership with another Doctor's S corp.

The partnership is 50-50.

[GBurns]

As per Post #5 Q 2):

What service does the partnership provide to either and/or both of the S Corps ?

Does the partnership provide services to any other entity ? What % ?

What other relationship is there ?

Although you do not like to answer questions or give details, proper answers are not possible on limited information. With the limted info that you like to give answers concerning controlled group, ASG etc etc are limited.

Accuracy is also important. Elizabeth entering into a partnership is quite different to Elizabeth's S Corp entering into a partnership. Are you sure that both are S Corps ?