Slam Dunk Control Group

[K-t-F]

Gotta be a slam dunk...

2 businesses, A and B

Wife owns 100% of each

Totally unrelated businesses... (nothing to do with each other at all )

Wife only works A, she is the only employee

Husband works B, 4 employees - Husband and 3 workers

Wife technically makes no $$ from B

Doesnt matter does it... If wife wants to open a solo plan using A she has to include B... correct?

thanks

[K2retire]

Not exactly, although in this case the outcome is the same. One company can have a plan that does not cover the other, but they have to be able to pass coverage testing with all employees from both and in this case they would not be able to do that without covering NHCEs who work for B.

[K-t-F]

What if Company B had a Simple? Does that have any bearing on this situation?

[Belgarath]

Yes, but not in the way you are hoping. A SIMPLE has to be the only plan of the employer, (in this case, A & B) so even if you could pass testing with separate plans, you can't maintain both the SIMPLE and a separate 401(k).

[K-t-F]

Ahhh yes.. I need to consider them one company.