cdizzle
Jun 23 2004, 06:20 PM
Real Estate Sole Proprietor (Schedule C) wants to setup a SEP.
He owns 100% of another company with 5 employees, which he does not work for or receive compensation. The company is a C-Corp that 2 years ago terminated a 401k plan.
What issues do you see for the Sole prop? I thought a SEP did not require discrimination testing which would allow us to ignore the employees of the other company.
Thank you
Gary Lesser
Jun 23 2004, 10:59 PM
Not in this life. All employees of the controlled group must be consided for eligibility purposes. See IRC 414(b) and ©.
Moe Howard2
Jun 25 2004, 08:13 AM
Gary, do you mean IRC 414© and "see" ?
Nothing I like more than some good ole benefits humor!
Thanks Moe, I fixed the cite in above post. --gsl
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