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Posted

Spouses in CA own separate sole prop businesses without employees and each has a solo 401(k) plan document. 

May I file a 5500-EZ for each separately or must I file a 5500- SF for each due to control group status after the $250k ceiling is reached.   I recall that used to be the case in 2008 but I believe that has since changed.

Looking for validation or direction on where to look further.

Thanks,

Bob

Posted

If CG then you must aggregate for $250k threshold. 

Is this a CG because CA is a CP state, or because they have minor children, some other reason? One or more of the current pension bills being considered (SECURE 2.0, RISE and SHINE, EARN) has provision for making these situations not CGs w/o needing to worry about community property or minor children, but whether that makes the final cut and gets enacted, we'll see.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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