Affiliated service Group

[Guest Kevin1]

I just found out a doctor client has an interest in a clinic where he regularly performs services. I'm gathering details, but it looks like an affiliated service group. Four docs own around 9% each of the clinic with the balance owned by a large corporation. I'm getting more details on them.

The clinic apparently has a 401(k) with employee deferral only-no employer contributions. For 2008 my doc's plan is a 3% safe harbor and this year also contributed a SH match along with maximum deferrals.

The question is what is the fix? Do you include 9% of the eligible clinic employees salaries in my doc's plan? Do you look at the best plan of all AFS members, calculate a contribution for the eligible clinic employees have the clinic deposit it? I've looked in "Who's the Employer" by Watson but don't see the solution.

Thanks for any help.

[Guest Sieve]

Does either plan pass 410(b) after including employees of all employers?