Bates & Company
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Nova 401(k) Associates
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Retirement Plan Legal Specialist Pentegra
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Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
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Carpenter Morse Group
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Central Pension Fund of the IUOE
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Retirement Plan Relationship Manager ERISA Services, Inc.
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Central Pension Fund of the IUOE
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United 401(k) Plans, Inc.
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Compass Retirement Consulting Group, Inc.
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Nicholas Pension Consultants
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Prime Pensions, Inc.
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Trucker Huss, A Professional Corporation
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Retirement, LLC
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Question 213: My client is a partnership of four professional corporations. Each P.C. has one employee, the doctor who owns it. There are no employees of the partnership. The partnership has a 401(k) profit sharing plan on a basic prototype document, and each P.C. cosponsors the plan. Each P.C. determines its own discretionary contribution. Do the ASG rules force each P.C. to contribute equal amounts in a given year, or is it okay as-is, with different allocations to different doctors? Could each professional corporation set up its own separate profit sharing plan? | |
Answer: Let's start by asking the question you didn't ask. Does the plan document permit the allocation of different percentages to different employees? It certainly could, but because it's a "basic prototype" I doubt that it does. No matter what the law permits you to do, if the document does not permit it, that can be a problem.
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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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