Gary Posted September 15, 2008 Report Share Posted September 15, 2008 A one person C corporation has a H&W plan. The deductible limit under 419A for additions to accounts is computed to be $20,000. The owner contributes $10,000 to the plan, thus it would be fully deductible. The plan has income of $5,000 for the plan year. So at the end of the plan year the plan has total assets of $15,000. Is the $5,000 of investment income taxable to the corporation? Or since the total contributions and investment return is less than the 20k deductible limit, is none of the income taxable? Thank you. Link to comment Share on other sites More sharing options...
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