Pension Rights Center
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Plan Compliance Analyst (administrator) RPA
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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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Definiti
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Quantech Pensions LLC
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Small NY Actuarial TPA Firm
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Howard Simon & Associates
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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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Retirement Plan Relationship Manager Prosperity Advisors, LLC
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Southern Pension Services
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Carpenter Morse Group
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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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