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SEP PLans


Guest JDGlenn

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Guest JDGlenn

Can a successor company that has eaither a: acquired a predecessor company or b: merged with a predecessor company adopt their SEP plan that was adopted by the predecessor company. As I understand the only vehicle available a new company is a SIMPLE plan or a qualified plan as the SEP's have been repealed.

Note: I have been doing alot of research regarding this topic in RIA and have not found anything. Can anyone give me code section? I need to find an answer

Thanks

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JDGlenn CPA

[This message has been edited by JDGlenn (edited 02-24-99).]

[This message has been edited by JDGlenn (edited 02-24-99).]

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SEPs are still in existance. Existing SARSEPs (salary reduction SEPs) are grandfathered. If the SEP of a predecessor is adopted; all service with the predecessor must be counted (for most purposes)under IRC 414(a).

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