I think I am thinking too much today....

In another area I asked the question... controlled group? Now I think I have the answer but have this question... Here are the specifics:

Company A ... son and wife 50/50 owners

Company B ... son, wife, mom, and dad 25/25/25/25 owners

From my research (hope I am getting it correct) this is not a controlled group. And since it is not a controlled group can the son and wife both participate in both plans? 2 separate 415 limits?

To delve deeper... Company A would establish a plan and since it would be a husband and wife business there would not be a 5500 requirement. But, if Company B was to also establish a plan would we still be able to file an EZ?... 4 partners/owners? No 5500 requirement? Is there a catch I am missing?

Thanks!

By the skin of your teeth, there's two controlled group's. Assuming the son is over 21, he's not attributed his parent's ownership only because he doesn't own MORE than 50% - he owns exactly 50%. OTherwise the son would have owned 100% of both Companies!

But such is not the case and therefore, the 80% common ownership test is failec (i.e., no one owns 80% of both Companies).

So have fun with two 415 limits!!

With respect to 5500 reporting, see page 3 of the 5500 instructions which answers the question quite plainly. You'll note the answer depends on whether or not they are incorporated.

Ahhh.. thanks Austin... just a simple confirmation made me feel THAT mutch better.

I have been looking at the EZ instructions... I will look at the 5500 instructions.

Thanks!