MaryM Posted December 10, 2015 Share Posted December 10, 2015 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? Link to comment Share on other sites More sharing options...
Belgarath Posted December 10, 2015 Share Posted December 10, 2015 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. Link to comment Share on other sites More sharing options...
MaryM Posted December 10, 2015 Author Share Posted December 10, 2015 There are n o family members involved for attribution that I am aware of and I think that he is ok. thanks. Link to comment Share on other sites More sharing options...
Jim Chad Posted April 14, 2016 Share Posted April 14, 2016 Do you know what a management controlled group means? Link to comment Share on other sites More sharing options...
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