Jump to content

Recommended Posts

Posted

Good morning!  I have a new client that is currently maxing out a SEP, but also has the opportunity to start a Profit Sharing or Cash Balance Plan.  I don't believe the SEP has any bearing on the maximum contribution into the other plans, as the companies are unrelated, but I wanted to make sure someone could max out both a SEP and a Profit Sharing (or receive a contribution in a Cash Balance).

Thanks in advance!

Posted

Your belief is incorrect. 

EDIT - when I wrote the above I had missed the "unrelated" part.  CBZ is correct if truly unrelated for CG, ASG and 415(h) purposes then yes the participant could do this. 

I carry stuff uphill for others who get all the glory.

Posted

Depends how "unrelated" they are. Even if there is not enough common ownership to create a controlled group under 414(b)-(c), there might still be a controlled group under 415(h).

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

Posted
2 hours ago, Bill Presson said:

Even if the companies are unrelated?

TBH I missed that "unrelated" part.  Problem with old eyes reading a forum message on a mobile device early in the morning.  So if they are truly unrelated, then yes one person could participate in a one company's SEP and the other unrelated company's qualified plan(s).   I will edit my other reply to note this.  Thanks. 

I carry stuff uphill for others who get all the glory.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use