Moonlighting MD

[drakecohen]

Can a doctor who sold his practice to a hospital set up a Defined Benefit plan based on additional income he now gets. Specifically:

1) MD and his two employees are now on the hospital payroll and he does surgery for hospital patients

2) Excluded from his contract with the hospital are other medical procedures (elective surgieries, routine consultations) for which MD gets fees paid to his corporation which he still maintains.

Any issues with :

(a) setting up a plan using that non-hospital income, or

(2) those other two employees not being covered under the MD's own plan?

[Effen]

The MD can create a plan for his income earned outside of the hospital.

if the two "employees" are his employees, then they need to be considered. If they are really hospital employees, then they are not "his" employees and can be ignored.

As long as the income is paid by his company, and not the hospital, it should be ok.