Discussion:Simple IRA and SEP IRA

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Advanced Tax Questions --> Simple IRA and SEP IRA

Discussion Forum Index --> Tax Questions --> Simple IRA and SEP IRA

Maughact (talk|edits) said:

27 January 2011
I have a dentist who has two practices. One he is a sole proprietor and the other is a S Corp. Can he have a SEP for the sole proprietor income and then a Simple IRA for his corporation? The publications say that the corporation can't have another established plan, but does that include the

owner or employees?

Marty1970 (talk|edits) said:

27 January 2011
No can do if the 2 businesses comprise a controlled group or an affiliated service group, which are described at 414(b), (c), and (m). So if dentist is 100% owner of both businesses, that's a controlled group. A SIMPLE Ira sponsored by either of the businesses would need to cover eligible employees of the other business and would also have to be the only plan sponsored by the controlled group. A SEP Ira sponsored by either business would need to cover employees of the other business.

To join in on this discussion, you must first log in.
Personal tools