Basically Posted February 8, 2022 Posted February 8, 2022 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.
Lou S. Posted February 8, 2022 Posted February 8, 2022 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. Luke Bailey 1
CuseFan Posted February 8, 2022 Posted February 8, 2022 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). Luke Bailey 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Basically Posted February 9, 2022 Author Posted February 9, 2022 I'm pretty sure that is how it is CuseFan but I will be sure to check. Thank you
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