Earl Posted August 25, 2017 Posted August 25, 2017 Client has had self employment consulting income for each year for last 20 years. Started a business with EEs selling widgets which ran for 2005 - 2010. Owned 100% of both businesses. Looking at DB Plan for 2017. can I use the SE income in 2005 - 2010 years when controlled group existed or does the presence of employees in that period mean I have to ignore it? Thank you for any thoughts or information. CBW
CuseFan Posted August 29, 2017 Posted August 29, 2017 I don't see any reason you cannot use that income for determining this person's 415 100% of comp limit, in addition to his pay from the company. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Larry Starr Posted August 30, 2017 Posted August 30, 2017 Absolutely ok to use prior comp; make sure you list the sole prop as a predecessor entity in the plan document for service and eligibility. Larry. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
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