Rex, SoCal, Effen, rcline and others:
Assume, for the moment, that the employer is not worried about overpaying for life insurance (pretend that the agent is a relative trying to qualify for the Million Dollar Round Table!).
Are you in general agreement with my calculation of a maximum deductible contribution of about $170,169?
Or, do you think that I am way off?
Thanks!
I'm not an expert on business entities but if they have a sub-S election I'm assuming that means they are taxed like a sub-S Corportaion. If that's the case i would assume that the memebers get 2 forms of income, their W-2 wages as an employee that are generally eligible for pension purpose and their pass through dividends as member/shareholder which are generally not eligible for pension purposes.