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Posted

I have a small plan that has a couple of companies, a control group.  The owner of course earns compensation from each company.  When calculating the contribution the compensation I would  use would be the total he earned from all companies, correct? As I write this it seams like a no brainer but I just want to be clear.

Posted

Assuming all companies have adopted the plan and the plans definition of compensation is total comp, yes the sum of his comp from all 3 companies is what you would use for allocation compensation, subject to the 401(a)(17) limit.

Posted
44 minutes ago, Lou S. said:

Assuming all companies have adopted the plan

Green - this is the key, it is not usually automatic (read the document) that all members of a CG are covered by a plan, usually each separate affiliated employer must adopt as a participating employer. If not, no employees or owner comp from non-participating companies can be included for contribution determination (but included for coverage and nondiscrimination).

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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