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Partnership Dissolution - Safe Harbor 401(k) Plan


JRN
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Partnership sponsors safe-harbor 401(k) plan -- non-elective 3% Employer contribution. Partnership is dissolving effective 02/28/2021. What is the maximum amount that can be contributed to the Plan for a partner for 2021?  Is the answer simply the pro-rated 415(c) limit (i.e., $58,000 x 2/12 = $9,667) plus $6,500 catch up if age 50 or older?  Total = $16,167 (assuming partner's Earned Income for the 2-month short plan year is at least $16,167).

Does the Plan termination date necessarily have to be 02/28/2021? Although the partnership will dissolve on 02/28/2021, the partnership will still exist in some form after that date to collect account receivables, pay bills, etc. 

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How is the partnership dissolving and still existing?  It sounds like they are terminating the partnership but it will effectively remain in existence until such time as all revenues are cleaned out.  I'd hold off on the plan termination date.

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