2 SIMPLE IRA's

[JoshinNC]

I think I know this answer, but want to run by everyone.

My client is an M.D. and has two seperate practices, operating under two EIN's, in two seperate locations. We are setting up a SIMPLE IRA plan for each EIN and I think he can contribute to both, provided that he does not exceed a total contribution of $14,000 this year. I've read Pub 560 and TTB, and all I can find is that your total contributions to defined contribution plans cannot exceed $14,000. Just worried, as he is the only shareholder, since this would be a controlled group. Anyone know of any regs/code that would disallow contributions to both plans, subject to applicable limits?

Thanks in advance!

[JoshinNC]

answered my own question

pursuant to IRC Sec. 414 this is a controlled group, as defined by IRC Sec. 1563(a) and is, by virtue of IRC Sec. 408(p), considered one employer, even if two plans exist (1 with each EIN). therefore, the shareholder can only contribute up to his limit determined by his age ($10000 under age 50).

if I am missing something let me know, PLEASE.

[LawrenceGR]

I think he can match the contribution up to 3% of SE income

[John of PA]

SIMPLE IRA is a DC plan

I think I know this answer, but want to run by everyone.

My client is an M.D. and has two seperate practices, operating under two EIN's, in two seperate locations. We are setting up a SIMPLE IRA plan for each EIN and I think he can contribute to both, provided that he does not exceed a total contribution of $14,000 this year. I've read Pub 560 and TTB, and all I can find is that your total contributions to defined contribution plans cannot exceed $14,000. Just worried, as he is the only shareholder, since this would be a controlled group. Anyone know of any regs/code that would disallow contributions to both plans, subject to applicable limits?

Thanks in advance!

Just a technocality, but a SIMPLE IRA is a defined contribution plan, though it may not be a qualified plan, so what you read does apply.