drakecohen Posted June 20, 2019 Posted June 20, 2019 A doctor, partner in a Medical Practice, covered by a 401k has separate Schedule C income for a separate location apart from the practice. Can the doctor set up a one-participant DB plan using only that Schedule C income? If not, can a separate DB plan be set up if the Schedule C income was not related to doctoring (ie. from writing articles or getting trustee fees)?
jpod Posted June 20, 2019 Posted June 20, 2019 Technically, the answer to your first question is certainly "yes," but I assume what you are really asking about is whether there would be any 410(b) coverage or other qualification issues/roadblocks to address. Someone needs to determine if the Schedule C trade or business is a member of either a 414(c) group or a 414(m) group with the medical practice partnership (or any other trade or business with employees). If not, there shouldn't be any issues with setting up a separate plan just for the doctor's Schedule C business. Lou S. 1
CuseFan Posted June 20, 2019 Posted June 20, 2019 You say a separate location, but I assume you mean a separate business. As jpod noted, you'll need to first determine if there is a control group or affiliated service group and, if neither applies, you should be good to go. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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