Control Group question

[mkaufman]

Hello,

Some background:

I had a sole-prop some time back and had a self-employed 401k plan with Fidelity with EIN of sole-prop

Then I created a s-corp and just used the same plan - changed EIN to S-corp, Name to a generic name - MKK-Plan. 

All good, no issues. I was thinking of shutting down the sole-prop but never did. 

 

Now, one of my clients (for whom I do most of my work) has changed their policy and want me to handle task based on sole-prop and NOT through my s-corp. 

Since I own both entities - S-corp and sole-prop, I'm assuming this becomes a control group and I can make contributions and profit share based on sole-prop earnings to the MKK_Plan as well. 

When making contributions, Fidelity asks for Employer Name and EIN and I assume, I'll still put in the S-corp name and EIN since that entity is Plan Sponsor, is that correct?

Where on 5500 do I indicate that this is a control group?

5500 instructions suggest that I'm still a Single-Employer plan, is that right?

 

Thanks for your assistance.

 

[Bri]

Code 3H is how you indicate a controlled group, similar to how you put 2J for the 401(k) arrangement.  And a controlled group is still a single-employer plan, indeed.

 

You may want both of your entities to adopt the plan, though, if they haven't already.  Fidelity should have a supplemental page to list adopting employers.  I suppose it's your choice which you wish to have be the primary.

[mkaufman]

On 9/7/2021 at 5:08 PM, Bri said:

Code 3H is how you indicate a controlled group, similar to how you put 2J for the 401(k) arrangement.  And a controlled group is still a single-employer plan, indeed.

 

You may want both of your entities to adopt the plan, though, if they haven't already.  Fidelity should have a supplemental page to list adopting employers.  I suppose it's your choice which you wish to have be the primary.

Thank you.

Checked and see that Fidelity's form does provide section to list related employers. 

Had posted this earlier but not sure why it didn't display