What kind of plan is this?

[TXEA]

Interesting question. Is the plan a SEP plan or some other type of plan? The only reason I ask is that you mention the owner contributes to a SEP plan.

If it is a Keogh or profit sharing plan, there must be some TPA that is administering the plan for your client. I would try and visit with them.

[DaveO]

Good question and I don't know the answer but thought I'd bump it. Have you seen the plan documents?

[Snaggletooth]

Client, 77 yrs old, has had a retirement plan for his employees for decades, actually starting back in the days of the old Keough plan.

Essentially, he pays 8% of their salary into a pension plan for each eligible employee. In most years, ALL of his employees are long-time and eligible. He has been paying 8% of his own income into his SEP. Employees make ZERO contributions and therefore no elective deferrals.

Here's the question. Client continues to pay this for his employees, but at his age he no longer wishes to add to his SEP and increase his RMDs, which are becoming substantial. If he pays 8% for his employees, must he contribute 8% of his income to his own SEP if he doesn't wish to do so?

Tried to research this, but I don't know what kind of a code section governs this plan. 408k? 403k? 403b? 408d? Not sure this kind of detail for rare plans exists in the Tax Book, or else don't know how to look for it.