SEP IRA for multiple companies/entities

I have a client that has owns two companies, one with 3 employees and the other company with no employees. If he has income from both companies, can he set up a SEP for the one with no employees so he does not have to put in funds for the company with employees?



No. The controlled group rules for corporations and similar rules for other ownership types are designed to prevent limitation of coverage to just the owner.



Is it still considered a controlled group if the two companies are in completed related businesses and markets; ie on is IT staffing and 1 is property rehab?



Controlled groups are defined by ownership and control, not by business type.  The fact that the two businesses are in different markets is irrelevant.



Add new comment

Log in or register to post comments