Leaderboard

I'd reach out to support @ftwilliam.com and ask them. They'll know best what can be done and what cannot in the program.

A very smart person told me today, "The regs tell you what you can't do and what you must do. They don't tell you what you can do." And that is where this lies, I believe.

They lose the get out of top heavy free card for 2018. So if the TH ratio on 12/31/17 was more than 60% they have to satisfy TH minimum contributions for 2018. They lose the ADP/ACP free pass too, have to test for 2018. Since they are at 74% on 12/31/18 - they are TH for 2019. It's a bit too late now but given the facts the client should probably have been advised to keep the safe harbor through 12/31/18 and remove it for 2019 while also informing them of the TH nature of their plan and the implications.

The plan is adopted by an employer, and only the income from that employer can be counted. So, if the sole prop adopts a plan, any income received from another employer, whether W-2 or K-1, doesn't count for the sole prop plan (assuming no 414(m), (n), or (o) issues - controlled entities). It's highly unlikely that the 2% ownership will allow him to adopt a plan for that entity, so he has only his sole prop plan and only his sole prop income to take into consideration.