Prime Benefits
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Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
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Southern Pension Services
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Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
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Advanced Plan Designs, LLC
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Pension Rights Center
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Carpenter Morse Group
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Howard Simon & Associates
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Small NY Actuarial TPA Firm
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Definiti
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Southern Pension Services
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Question 123: Because a SEP is not a qualified plan, can two sole proprietors (X and Y) that are members of a controlled group have two separate SEPs and ignore the controlled group rules? |
Answer: No. Of course, two sole proprietorships technically couldn't be a "controlled group" because that applies only to incorporated entities, but they could be a group of trades or businesses under common control pursuant to Code section 414(c), perhaps through the attribution rules. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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