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Posted

We have a client who is 50% shareholder of a S-Corp. The S-Corp is 50% owner of a LLC. The client has W2 compensation from the LLC. The LLC has no qualified plans or SEPs. The question is, can the client contribute to a SEP sponsored by the S-Corp. If not, what about the LLC??

Posted

It is possible for either the S-corp or the LLC to adopt a plan. Very likely okay in the LLC, questionable in the S-corp. But, you don't give nearly enough facts that must be considered like controlled group/affiliated group issues regarding the other owners and their employees

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