controlled group

[thepensionmaven]

We currently administer a profit sharing plan for a doctor-sole proprietor with one employee. It was just brought to our attention that the doctor has a P.C. as well, with one employee also.

Per the client's wishes, we amended the sole proprietor plan to include the P.C. and its' employees. The salary for the doctor from the PC plus the self employed income from the sole proprietorship brings the doctor over the 415 limit on compensation, and he would be eligible to make the full $49,000 contribution.

However, his self employment income is only $150,000 and obviously can not justify a contribution of $49,000.

Can we combine the income from the PC with the self employed income so he can contribute the full $49,000; and if so, woiuldn't it have to be split between the PC and the proprietorship?

Can he deduct the full contribution from the proprietorship since the PC tax return has already been filed and the accountant took $0 deduction and wanted a $0 deduction.