cpc0506 Posted March 31, 2011 Posted March 31, 2011 I have a client is is having trouble passing the ADP Test. The owners of company A (our client) are partial owners of another company B (not our client). There is no control group issue. Owners receive compensation from both companies. Company A has a 401k plan. Company B has a simple IRA plan. Can the owners make contributions to both Company A's 401k plan plan and Company B's Simple Plan?
ETA Consulting LLC Posted March 31, 2011 Posted March 31, 2011 There is no control group issue. Sure. As long at any of them does not contribute more than $11,500 to the SIMPLE or $16,500 overall. This is assuming that neither is catchup eligible. Good Luck! CPC, QPA, QKA, TGPC, ERPA
Guest Sieve Posted March 31, 2011 Posted March 31, 2011 If it matters . . . even if it's not a controlled group, you still may not have 2 separate 415 limitations. See IRC Sections 415(h) & 1563(f)(4).
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