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Partnership P has a 401(k) plan covering two individual unrelated partners A with 70% share & B with 30%. The business has no employees.

A owns 100% owner of corporation X &

B owns 100% owner of corporation Y.

Corp X & Y each derive income from partnership P.

A & B are paid on W-2 from X & Y

What are the issues with X & Y each sponsoring a defined benefit plan for A & B respectively? ..... 401(a)(26) comes to mind

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