I don't work with SEPs. I have what should be a fundamental question for the experts.

Where in the Code or regs do I find that the definition of employer for purposes of a SEP means all members of the controlled group?

Situation is OWNER A is 100% owner of Corp A with employees, OWNER A also has a sole proprietorship, he is only employee. Account told him he could set up a SEP for sole prop. without covering employees of Corp A. Intuitively this has to be wrong.

Help.

Thanks

408(k)(2) sets forth eligibility rules for SEPS.

414(B),© sets forth controlled group rules.