Retirement Plan Relationship Manager ERISA Services, Inc.
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Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
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Bates & Company
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Nova 401(k) Associates
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Compass Retirement Consulting Group, Inc.
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Central Pension Fund of the IUOE
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Nicholas Pension Consultants
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Trucker Huss, A Professional Corporation
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Retirement Plan Legal Specialist Pentegra
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United 401(k) Plans, Inc.
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Central Pension Fund of the IUOE
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Prime Pensions, Inc.
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Retirement, LLC
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Carpenter Morse Group
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Jr Retirement Plan Administrator/ Administrative Assistant Hochheiser Deutsch & Co, Inc.
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Question 245: A person owns 51% of a non-service Company A and 100% of sole proprietorship Company B. Company B derives 100% of its business from Company A. Is this is a controlled group for most purposes? For 415 limit purposes? |
Answer: You've asked the the most frequently asked question submitted by readers of this column. The answer is no, this isn't a controlled group for most purposes, but there is an argument that you are under common control for purposes of 415. I still think there's doubt. Until authoritative precedent is published, I recommend that your client incorporate the sole proprietorship and eliminate the doubt. |
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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