Thanks for this information, Mike. Yes, I've read this section over and over. What is not clear to me is whether 414(n) applies to SEP IRAs. I can't find any place that definitely states that. This is the best I've found so far and does seem to concur with your conclusion:
4.72.17 Simplified Employee Pensions (SEPs) and Salary Reduction Simplified Employee Pensions (SARSE...
4.72.17.5.2 (08-28-2017)
The person or firm for whom services are performed may have to include in a SEP any leased employee who is treated as an employee of the recipient.
In general, a leased employee is any person who is not an employee of the recipient but who is hired by a leasing organization and performs services for the recipient. See IRC 414(n).
Thank you very much for the second set of eyes on this. Much appreciated.
David
