SEP IRA
IF an employer has several related entities, but each has a separate function, and they want to establish a SEP IRA…is this scenario legal? The employees of 2 entities qualify for SEP based on the plan documents. The 3rd entity, is a seasonal business that only operates a few months per year. The employees return each year for their function. Is it possible to not offer a SEP through that entity even though the same person, or shareholder, controls all 3 businesses?
Permalink Submitted by Alan - IRA critic on Fri, 2018-01-12 18:32
The seasonal entity must be included in the SEP, at least the employees that meet the participation requirements for the plan. If the employees were new each year, they would not qualify but apparently many of the employees return to work each year and they would likely meet even the strictest allowed requirement.