sdix401k Posted July 24, 2019 Posted July 24, 2019 I am looking for opinions if I have a an affiliated service group. Owner A owns a practice 66%. Client also owns an office building and that company provides rental space to the practice and a few other clients. Rental Company is 100% owned by Owner A. I do not believe so. Would the opinion change if the sole client renting the space was the practice? A follow up to the above is a transaction occurred mid year that reduced his ownership to 66%. I am thinking the determination of a control group or affiliated service group is a snapshot determination date and that Owner A could set up another 401k plan for the leasing - rental company for the current year?
Bill Presson Posted July 25, 2019 Posted July 25, 2019 It's not unusual to have a different entity own the building. Does that rental company have any employees? And I don't think real estate is one of the professions that are subject to ASG rules. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
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