Guest David Winkler Posted December 27, 2010 Report Share Posted December 27, 2010 Section 401(d) states the contributions on behalf of any owner-employee may be made only with respect to the earned income of such owner-employee which is derived from the trade or business with respect to which such plan is established. Therefore, if an individual is a partner in a partnership, and also has a Schedule C business, the contributions for his Schedule C business cannot include the self-employment income of the partnership if the partnership has not established a plan. Question: Can an individual in such situation, make a full $49,000 contribution for both the Schedule C business, and his allocable share of partnership income since each is considered a separate employer? The businesses are not part of a controlled group or affiliated service group. The individual has self-employment income from each business in excess of $245,000. Link to comment Share on other sites More sharing options...
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