Plan Sponsor is a Corporation, of which client is sole owner. A partnership has also adopted the plan. The corporation generates losses.
He is over age 59.
Let's assume his DB plan allows a distribution from the plan.
Here's what he wants to do:
Put in his required contribution. Deduct it on page 1 of his 1040, not his corporate return.
Then take a distribution of approx. twice that amount into his Roth plan. So page 1 will show 0 earned income. a $200 k distribution from Retirement Plan, and a $100k reduction for Retirement plan contributions.
Yes? No?