K2retire Posted February 18, 2014 Posted February 18, 2014 We are the advisor two a couple of plans maintained by a controlled group. One of the companies gives a match, the other does not. The bundled record keeper has tested it each year, demonstrating that the two companies pass coverage separately, and preparing separate ADP/ACP tests. The employer is nearly frantic because they have now been told (by someone of unknown credibility) that they can no longer do separate testing because they have switched from C corporations to S corporations. I have not been able to find anything to support this contention, but wondered if I've simply overlooked it.
ETA Consulting LLC Posted February 18, 2014 Posted February 18, 2014 Someone is selling them a line of BS. When testing under 410(b) to prove that the plans passes on a standalone basis, it is not relevant whether the entity is taxed as a "C" or "S" Corp. Good Luck! CPC, QPA, QKA, TGPC, ERPA
K2retire Posted February 19, 2014 Author Posted February 19, 2014 That's what I thought, but I needed another opinion. Thanks!
Bill Presson Posted February 20, 2014 Posted February 20, 2014 Always ask for the other person to provide a cite in support of their position. ETA Consulting LLC 1 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
GMK Posted February 21, 2014 Posted February 21, 2014 ^ just be careful if they refer to Publication 590 http://benefitslink.com/boards/index.php?/topic/55047-multiple-iras-and-rollovers-in-a-12-month-period/ K2retire 1
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now