SEP IRA and ownership

[MaryM]

We have a client that owns a proprietorship 100% no employees and has a SEP IRA for that income

He is also a doctor and just bought 50% of a practice that has a 401k plan. Can he continue to fund the SEP for the self employed income?

[Belgarath]

It depends. If there is NOT a controlled group/affiliated service group, then yes. If there IS a CG/ASG, then you will have to look at everything in much more detail, including all employees of both businesses, compensation limits, 415 limits, coverage/nondiscrimination, etc... - including whether the SEP is an IRS model SEP or not. Based purely upon the ownership percentages you give, barring some attribution, there shouldn't be a controlled group, but there might be an ASG, which has the same effect.

Odds are good that if you do have an ASG, the answer will be no.

[MaryM]

_{There are n o family members involved for attribution that I am aware of and I think that he is ok. thanks.}

[Jim Chad]

Do you know what a management controlled group means?