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Full Version: Corp switches from SEP to PS plan mid-year; have to count contributions under both for "annual additions" testing?
BenefitsLink Message Boards > Retirement Plans > SEP, SARSEP and SIMPLE Plans
nipa
a c-corp has a SEP from 1/1 - 5/31. as of 6/1 changed to a s-corp. wants to have a short plan year (6/1 - 12/31) profit sharing plan. other than having to prorate for the short plan year, should the annual additions limitation include both plans?
Gary Lesser
Yes. The PS deduction limit is also reduced by any SEP contributions.
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