affiliated service group/ controlled group

[mefrancis1729]

I have a husband and wife with multiple companies that both want to be in a cash balance plan. They are both physicians. The wife owns 100% of of a management company. The wife also owns 100% of her MD, LLC. Her husband also owns his own MD, LLC. Both MD, LLC's pay management fees to the management company and the wife receives compensation from the management company.

I believe the management company creates an affiliated service group with the 2 MD, LLC's. Can it also be a controlled group?

The management company is shutting down and will cease to exist. Can I set up a plan under the wife's MD, LLC and include compensation from the management company as long as it is still around? After the management company shuts down, can I maintain the plan as a controlled group between the 2 MD, LLC's as they have attributed ownership due to their marriage?

[Mr Bagwell]

I will jump on some of this.....

The management company may imply that all three entities are in a control group. My guess is that the management company is affiliated ONLY with the MD LLC's. If not, other questions arise as to how much of the management company's income is derived from where....

When the management company is shut down, the two MD LLC's may not be a control group. Is either one of the DR's involved as a director or employee of the other's corporation? If not, the attribution is not attributed. However, if they have a minor child, this DOES create a controlled group.

I would hate for you to get this all rolling only to find out you have to separate later....