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 248: Employer A is a partnership with 4 S corporations as its partners. Each S corporation is owned by a single individual. The S corporations render professional services only to the partnership. The partnership has employees and sponsors a deferrals-only 401(k) plan. Can each S corporation sponsor its own SEP arrangement for the benefit of its sole shareholder? Are these affiliated businesses? If so, must contributions be made to the partnership plan if SEP contributions are made to the S corporation plans? Must testing be done on a controlled group basis? |
Answer: The five businesses are an affiliated service group, and this seriously affects what they can do. |
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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